WEST VIRGINIA LEGISLATURE

2022 REGULAR SESSION

Introduced

Senate Bill 611

By Senator Clements

[Introduced February 10, 2022; referred
to the Committee on Transportation and Infrastructure]

A BILL to amend and reenact §17-4-20 of the Code of West Virginia, 1931, as amended, relating to removing the cap on a bidder’s contract bond; and updating outdated language.

Be it enacted by the Legislature of West Virginia:

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 the contract price, conditioned that such the contractor shall well and truly perform his or her contract. and

(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 or her in and about 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, 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 highways, in loose-leaf form electronic or paper form as may be required, to the clerk of the county court of the county in which such contract is to be performed.  and it shall be It is the duty of the 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.

NOTE: The purpose of this bill is to allow more flexibility when setting the bidder bond on projects.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.