(1) shall advertise for bids to construct the drainage project;

(2) shall award the contract for the drainage project to the lowest responsible bidder; and

(3) may reject any or all bids and readvertise for other bids.

(b) The board of drainage commissioners shall set:

(1) the terms for payment with the contractor; and

(2) the amount of the contractor’s bond, which shall be given in favor of the board of drainage commissioners.