§ 21-50. Bid bonds on construction contracts.

(a)

Except in cases of emergency, all bids or proposals for nontransportation-related construction contracts in excess of $500,000.00 or transportation-related projects authorized under Code of Virginia, title 33.2, ch. 2, art. 2 (Code of Virginia, § 33.2-208 et seq.) that are in excess of $250,000.00 and partially or wholly funded by the Commonwealth shall be accompanied by a bid bond from a surety company selected by the bidder that is authorized to do business in Virginia, as a guarantee that, if the contract is awarded to the bidder, the bidder will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not exceed five percent of the amount bid.

(b)

For nontransportation-related construction contracts in excess of $100,000.00 but less than $500,000.00, where the bid bond requirements are waived, prospective contractors shall be prequalified for each individual project in accordance with Section 21-46. However, the Director may waive the requirement for prequalification of a bidder with a current Class A contractor license for contracts in excess of $100,000.00 but less than $300,000.00 upon a written determination made in advance by the City Council that waiving the requirement is in the best interests of the City. The City shall not enter into more than ten such contracts per year.

(c)

No forfeiture under a bid bond shall exceed the lesser of:

(1)

The difference between the bid for which the bond was written and the next low bid; or

(2)

The face amount of the bid bond.

(d)

Nothing in this section shall preclude the City from requiring bid bonds to accompany bids or proposals for construction contracts anticipated to be less than $500,000.00 for nontransportation-related projects or $250,000.00 for transportation-related projects authorized under Code of Virginia, title 33.2, ch. 2, art. 2 (Code of Virginia, § 33.2-208 et seq.) and partially or wholly funded by the Commonwealth.

(Code 1993, § 22.1-45; Code 2004, § 74-54; Ord. No. 2011-79-64, § 1, 4-25-2011; Ord. No. 2017-099, § 1, 6-12-2017)

State Law reference— Similar provisions, Code of Virginia, § 2.2-4336.

(Code 1993, § 22.1-45; Code 2004, § 74-54; Ord. No. 2011-79-64, § 1, 4-25-2011; Ord. No. 2017-099, § 1, 6-12-2017)

State law reference

Similar provisions, Code of Virginia, § 2.2-4336.