§ 2-562. Bid bonds.

(a)

Except in cases of emergency, all bids or proposals for nontransportation-related construction contracts in excess of five hundred thousand dollars ($500,000.00) or transportation-related projects authorized under Code of Virginia, 33.2-209 that are in excess of two hundred fifty thousand dollars ($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 which is legally authorized to do surety business in Virginia, as a guarantee that if the contract is awarded to such bidder, that bidder will enter into the contract for the work mentioned in the bid. The amount of the bid bond shall not exceed five (5) percent of the amount bid.

(b)

No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for which the bond was written and the next low bid, or (ii) the fact amount of the bid bond.

(c)

Nothing in this section shall preclude the purchasing agent from requiring bid bonds for construction contracts anticipated to be less than five hundred thousand dollars ($500,000.00) for nontransportation-related projects or two hundred fifty thousand dollars ($250,000.00) for transportation-related projects authorized under § 33.2-209, Code of Virginia, and partially or wholly funded by the Commonwealth.

(Ord. No. 3910-89; Ord. No. 5999-04; Ord. No. 6806-11, § 1; Ord. No. 7036-14, § 1; Ord. No. 7403-17)

Editor's note— Ord. No. 6806-11 shall be in effect on and after July 1, 2011.

(Ord. No. 3910-89; Ord. No. 5999-04; Ord. No. 6806-11, § 1; Ord. No. 7036-14, § 1; Ord. No. 7403-17)

Editor's note

Ord. No. 6806-11 shall be in effect on and after July 1, 2011.