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45A.430 Bid bonds.

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45A.430 Bid bonds. (1) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the local public agency to exceed twenty-<br>five thousand dollars (&#36;25,000). Bidder's security shall be a bond provided by a <br>surety company authorized to do business in this Commonwealth, or the equivalent <br>in cash, in a form satisfactory to the local public agency. Nothing herein prevents <br>the requirement of such bonds on construction contracts under twenty-five thousand <br>dollars (&#36;25,000) when the circumstances warrant. (2) Bidder's security shall be in an amount equal to at least five percent (5%) of the amount of the bid. (3) When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected, provided, however, that the local <br>public agency may set forth by regulation exceptions to this requirement in the <br>event of substantial compliance. (4) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids, provided that, if a bidder is permitted to withdraw his bid before <br>award because of a mistake in the bid as allowed by law or regulation, no action <br>shall be had against the bidder or the bidder's security. Effective: January 1, 1980 <br>History: Created 1978 Ky. Acts ch. 110, sec. 87, effective January 1, 1980.