SB611 H GO AM #1
Schiffour 3289
The Committee on Government Organization moved to amend the bill on page 1, by striking everything after the enacting clause and inserting in lieu thereof the following:
ARTICLE 4. STATE ROAD SYSTEM.
§17-4-20. Bidder’s bond required; return or forfeiture of bond.
(a) In any case where a contract for work and
materials shall be let as a result of competitive bidding, the successful
bidder shall, promptly and within 20 days after notice of award, execute
a formal contract to be approved as to its form, terms, and conditions by the
commissioner, and shall also execute and deliver to the commissioner a good and
sufficient surety or collateral bond, payable to the State of West Virginia, to
be approved by the commissioner, in such amount as the commissioner may
require, but not to exceed 110 percent of the contract price,
conditioned that such the contractor shall well and truly perform
his the contract. and The commissioner shall have
authority to grant a surety or collateral bond requirement required under this
section below 50 percent of the contract price below the requirements of this
section, as determined by objective criteria determined by the commissioner.
Any contractor or bidder that is adversely affected by the commissioner’s
ruling under this section shall have the right to appeal said ruling to the
Kanawha County Circuit Court to determine if the setting of said bonding
requirement is appropriate based upon objective criteria as the court may determine.
Said appeal shall be heard subject to a de novo review.
(b) The contractor shall pay in full to the persons
entitled thereto for all material, gas, oil, repairs, supplies, tires,
equipment, rental charges for equipment and charges for the use of equipment,
and labor used by him in and about the contractor in the
performance of such contract, or which reasonably appeared, at the time of
delivery or performance, would be substantially consumed in and about the
performance of such the contract. An action either at law or
in equity, A legal action may be maintained upon such the
bond for breach thereof by any person for whose benefit the same bond
was executed or by his or her assignee.
(c) The bidder who has the contract awarded to him or
her and who fails within 20 days after notice of the award to execute the
required contract and bond shall forfeit such check or bond, and the check
or bond which shall be taken and considered as liquidated damages
and not as a penalty for failure of such bidder to execute such the
contract and bond.
(d) Upon the execution of such the
contract and bond by the successful bidder, his or her check or bond
shall be returned released to him or her. The checks or
bonds of the unsuccessful bidders shall be returned released to
them promptly after the bids are opened and the contract awarded to the
successful bidder.
(e) A duplicate copy of such contract and bond
shall be furnished by the Commissioner of the Division of Highways, in loose-leaf
form electronic or paper form as may be required, to the clerk of
the county court county clerk of the county in which such contract
is to be performed. and it shall be It is the duty of the county
clerk to bind and preserve the same in his or her office and index the
same in the name of the commissioner and of the contractor.
Adopted
Rejected