Section 7-25-9 - Security posted by bidders on construction contract--Return of security tounsuccessful bidders.
7-25-9. Security posted by bidders on construction contract--Return of security to unsuccessful bidders. Each bid shall contain a certified check, cashier's check, or bank money order, in the sum equal to five percent of the amount of the bid. The check or money order shall be certified or issued by either a state or national bank domiciled within this state made payable to the county or treasurer thereof. In lieu of a check or money order a bid bond for ten percent of the bid may be submitted. The bond shall be issued by a surety authorized to do business in this state and payable to the county or treasurer thereof as a guaranty that the bidder will enter into contract should it be awarded to him and furnish a bond as herein provided. Should the successful bidder forfeit his check, money order or bid bond, the proceeds of the same shall be turned into the county general fund. The checks, money orders or bid bonds of all the unsuccessful bidders shall be, by the board, immediately returned to the respective makers thereof. No more time may elapse between the opening of the bids and either the acceptance of the bid of the lowest responsible bidder, or the rejection of all bids presented than is permitted in § 5-18-7.
Source: SL 1874-5, ch 27, § 49; PolC 1877, ch 21, § 45; CL 1887, § 609; SL 1889, ch 49, § 1; SL 1895, ch 53, § 1; RPolC 1903, § 849; SL 1915, ch 129; RC 1919, § 5885; SDC 1939, § 12.2308; SL 1955, ch 22; SL 1963, ch 51; SL 1969, ch 24; SL 1979, ch 46, § 1; SL 1987, ch 72.