Arizona Laws 41-2573. Bid security
A. As a guarantee that the contractor will enter into a contract, bid security is required for all construction procured pursuant to section 41-2533 and all construction services procured pursuant to section 41-2578, subsection F or section 41-2579, subsection F if the purchasing agency estimates that the budget for construction, excluding the cost of any finance services, maintenance services, operations services, design services, preconstruction services or other related services included in the contract, will be more than the amount established by section 41-2535, subsection D. Bid security shall be a certified check or surety bond.
Terms Used In Arizona Laws 41-2573
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Construction services: means either of the following for construction-manager-at-risk, design-build and job-order-contracting project delivery methods:
(a) Construction, excluding services, through the construction-manager-at-risk or job-order-contracting project delivery methods. See Arizona Laws 41-2503
- Contract: means all types of state agreements, regardless of what they may be called, for the procurement of materials, services, construction, construction services or the disposal of materials. See Arizona Laws 41-2503
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means any person who has a contract with a state governmental unit. See Arizona Laws 41-2503
- Cost: means the aggregate cost of all materials and services, including labor performed by force account. See Arizona Laws 41-2571
- Design services: means architect services, engineer services or landscape architect services. See Arizona Laws 41-2503
- Design-bid-build: means a project delivery method in which:
(a) There is a sequential award of two separate contracts. See Arizona Laws 41-2503
- Design-build: means a project delivery method in which:
(a) There is a single contract for design services and construction services, except that instead of a single contract for design services and construction services, the purchasing agency may elect separate contracts for preconstruction services and design services during the design phase, for construction and design services during the construction phase and for any other construction services. See Arizona Laws 41-2503
- Finance services: means financing for a construction services project. See Arizona Laws 41-2503
- Job-order-contracting: means a project delivery method in which:
(a) The contract is a requirements contract for indefinite quantities of construction. See Arizona Laws 41-2503
- Maintenance services: means routine maintenance, repair and replacement of existing facilities, structures, buildings or real property. See Arizona Laws 41-2503
- Operations services: means routine operation of existing facilities, structures, buildings or real property. See Arizona Laws 41-2503
- Preconstruction services: means services and other activities during the design phase. See Arizona Laws 41-2503
- Purchasing agency: means any state governmental unit that is authorized by this chapter or rules adopted pursuant to this chapter, or by way of delegation from the director, to enter into contracts. See Arizona Laws 41-2503
- State governmental unit: means any department, commission, council, board, bureau, committee, institution, agency, government corporation or other establishment or official of the executive branch or corporation commission of this state. See Arizona Laws 41-2503
B. Bid security shall be submitted in the following amounts:
1. For design-bid-build construction services, ten percent of the contractor’s bid.
2. For design-build construction services awarded by competitive sealed proposals pursuant to section 41-2578, subsection F, ten percent of the purchasing agency’s construction budget for the project as stated in the request for proposals, excluding finance services, maintenance services, operations services, 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 section 41-2578, subsection F or section 41-2579, subsection F, the amount prescribed by the purchasing agency in the request for proposals, but not more than ten percent of the purchasing agency’s reasonably estimated budget for construction that the purchasing agency 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. This section does not prevent a state governmental unit from requiring such bid security in relation to any construction contract. The surety bond shall be executed and furnished as required by Title 34, Chapter 2 or chapter 6, as applicable, and the conditions and provisions of the surety bond regarding the surety’s obligations shall follow the form required by section 34-201 or 34-608, as applicable.
D. If the invitation for bids or request for proposals requires security, noncompliance requires that the bid be rejected unless, pursuant to rules, it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements.
E. After the bids or proposals are opened, they are irrevocable for the period specified in the invitation for bids or request for proposals, except as provided in section 41-2533, subsection F, section 41-2578, subsection F and section 41-2579, subsection F. If a bidder is permitted to withdraw its bid before award, no action may be had against the bidder or the bid security.