Section R7-2-1102. Bid Security

A.      Bid security shall be required for all competitive sealed bid- ding for construction contracts, and for all competitive sealed proposals for design-build construction services or job-order- contracting construction services procured pursuant to R7-2- 1111, if the price, excluding the cost of any finance services, maintenance services, operations services, design services, preconstruction services, or other related services included in the contract, is estimated by the school district to exceed the amount established by R7-2-1002(A).

B.       Invitations for bid on school district construction contracts and requests for proposals for design-build construction services or job-order-contracting construction services, shall require sub- mission of bid security as follows:

1.        For design-bid-build construction services, ten percent of the contractor's bid.

2.        For design-build construction services awarded by com- petitive sealed proposals pursuant to R7-2-1111, ten per- cent of the school district’s construction budget for the project as stated in the request for proposals, excluding finance services, maintenance services, operations ser- vices, design services, preconstruction services or any other related services included in the contract.

3.        For job-order-contracting construction services awarded by competitive sealed proposals pursuant to R7-2-1111, the amount prescribed by the school district in the request for proposals, but not more than ten percent of the school district’s reasonably estimated budget for construction that the school district believes is likely to actually be done during the first year under the contract, excluding any finance services, maintenance services, operations services, design services, preconstruction services or other related services included in the contract.

C.      Acceptable bid security shall be limited to:

1.        An annual or one-time bid bond executed and furnished as required by A.R.S. Title 34, Chapter 2 or 6, as applica- ble; or

2.        A certified or cashier's check.

D.      The school district may issue a written determination to accept the bid security if the bid security fails to comply in a nonsub- stantial manner when:

1.        Only one bid or proposal is received and there is not suf- ficient time to rebid or resolicit proposals;

2.        The amount of the bid security submitted, although less than the amount required by the invitation for bids or request for proposals, is equal to or greater than the dif- ference between the apparent low bid or highest scoring proposal and the next higher acceptable bid or next high- est scoring proposal; or

3.        The bid security is inadequate as a result of modifying or correcting a bid in accordance with R7-2-1027 or R7-2- 1030, if the bidder increases the amount of security to required limits within two days after notification.

E.       After the bids and proposals are opened, they are irrevocable for the period specified in the invitation for bids or request for proposals, except as provided in R7-2-1030. If a bidder or offeror is permitted to withdraw its bid before award, no action may be had against the bidder or offeror or the bid security.

Historical Note

Adopted effective December 17, 1987 (Supp. 87-4). Sec- tion repealed; new Section made by final exempt rulemaking at 21 A.A.R. 1525, effective July 1, 2015

(Supp. 15-3).