A. Bid security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the Public Works Director to exceed $40,000. Bid security shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, or otherwise supplied in a form satisfactory to the Borough. Nothing herein prevents the requirement of such bonds on construction contracts under $40,000 when the circumstances warrant.
B. Bid security shall be in an amount equal to at least five percent of the amount of the bid.
C. When the invitation for bids requires security, noncompliance requires that the bid be rejected unless it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements.
D. If a bidder is permitted to withdraw its bid before award as provided in FNSBC 16.12.010(F), no action shall be had against the bidder or the bid security. (Ord. 2022-27 § 6, 2022; Ord. 94-084 § 5, 1994; Ord. 82-69, 1982. 2004 Code § 16.45.010.)