Section R7-2-1078. Bid and Contract Security

A.      Bid and performance bonds or other security may be required for material or service contracts to guarantee faithful bid and contract performance if the governing board determines that such requirement is advantageous to the school district. In determining the amount and type of security required for each contract, the governing board shall consider the nature of the performance and the need for future protection to the school district. The requirement for bonds or other security shall be included in the solicitation.

B.       Bid or performance bonds shall not be used as a substitute for a determination of bidder or offeror responsibility.

C.      If a bid or proposal is withdrawn at any time before bid or pro- posal opening, any bid security shall be returned to the bidder or offeror.

D.      After the contract is awarded, any bid security shall be returned to the unsuccessful bidders or offerors. Upon execu- tion of the contract, if performance bonds or other security were not required, or upon receipt of the specified bonds, if performance bonds or other security were required, the school district shall return any bid security provided by the successful bidder or offeror.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Amended by final exempt rulemaking at 21 A.A.R. 1525, effective July 1, 2015 (Supp. 15-3).