60-1112. Certificate of deposit authorized for state capital improvement projects.
60-1112
60-1112. Certificate of deposit authorized for state capital improvement projects.(a) The director of purchases may accept a certificateof deposit payable to the state instead of any required surety bond froma bidder or contractor in the case of any contract for construction, repairsor improvements under K.S.A. 75-3739, 75-3741 or 60-1111 and amendmentsthereto. Each such certificate of deposit shall be in an amount which isat least equal to the contract price, shall be subject to forfeiture tothe state and shall be in a form and under such other conditions as maybe applicable and prescribed by the director of purchases for surety bondsand in accordance with this section.
(b) Each such certificate of deposit shall be retained by the state forat least six months after the final acceptance of the construction, repairsor improvements for which the contract was entered into. At the end of suchperiod, the certificate of deposit may be endorsed back to the vendor orbidder if there are noclaims by the state under the contract for which the certificate of depositwas accepted under this section or by any person making a claim againstthe certificate of deposit under subsection (c). All interest accruing underany such certificate of deposit shall belong to the bidder or contractorunless the certificate of deposit is forfeited to the state or as otherwiseprovided under subsection (c).
(c) (1) In any case of a breach of performance under a contract for construction,repairs or improvements for which a certificate of deposit was acceptedunder this section, the director of purchases shall determine the amountof money needed to remedy such breach and may set off the amount from themoneys on deposit under the certificate of deposit, after notice to thecontractor of such breach and the amount determined by the director therefor.
(2) In any case of a claim against a certificate of deposit accepted underthis section for labor furnished, materials, equipment or supplies usedor consumed in connection with or for the contract for construction, repairsor improvements, the director of purchases may pay such claim from the moneyson deposit under the certificate of deposit if the contractor does notdispute such claim or the amount thereof. If the contractor disputes anysuch claim or the amount thereof, the director of purchases may interpleadsuch claim or claims in the district court for a county where the construction,repairs or improvements are located. The director of purchases may filean original action to resolve such claim or claims, if necessary, and payany moneys remaining from the certificate of deposit into the district court therefor.
History: L. 1983, ch. 290, § 1; July 1.