Effective: September 29, 2011
Latest Legislation: House Bill 153 - 129th General Assembly
(A) Except with respect to a contract described in section 9.334 or 153.693 of the Revised Code, each person bidding for a contract with the state or any political subdivision, district, institution, or other agency thereof, excluding therefrom the department of transportation, for any public improvement shall file with the bid, a bid guaranty in the form of either:
(1) A bond in accordance with division (B) of this section for the full amount of the bid;
(2) A certified check, cashier's check, or letter of credit pursuant to Chapter 1305. of the Revised Code, in accordance with division (C) of this section. Any such letter of credit is revocable only at the option of the beneficiary state, political subdivision, district, institution, or agency. The amount of the certified check, cashier's check, or letter of credit shall be equal to ten per cent of the bid.
(B) A bid guaranty filed pursuant to division (A)(1) of this section shall be conditioned to:
(1) Provide that, if the bid is accepted, the bidder, after the awarding or the recommendation for the award of the contract, whichever the contracting authority designates, will enter into a proper contract in accordance with the bid, plans, details, and specifications. If for any reason, other than as authorized by section 9.31 of the Revised Code or division (G) of this section, the bidder fails to enter into the contract, and the contracting authority awards the contract to the next lowest bidder, the bidder and the surety on the bidder's bond are liable to the state, political subdivision, district, institution, or agency for the difference between the bid and that of the next lowest bidder, or for a penal sum not to exceed ten per cent of the amount of the bond, whichever is less. If the state, political subdivision, district, institution, or agency does not award the contract to the next lowest bidder but resubmits the project for bidding, the bidder failing to enter into the contract and the surety on the bidder's bond, except as provided in division (G) of this section, are liable to the state, political subdivision, district, institution, or agency for a penal sum not to exceed ten per cent of the amount of the bid or the costs in connection with the resubmission of printing new contract documents, required advertising, and printing and mailing notices to prospective bidders, whichever is less.
(2) Indemnify the state, political subdivision, district, institution, or agency against all damage suffered by failure to perform the contract according to its provisions and in accordance with the plans, details, and specifications therefor and to pay all lawful claims of subcontractors, material suppliers, and laborers for labor performed or material furnished in carrying forward, performing, or completing the contract; and agree and assent that this undertaking is for the benefit of any subcontractor, material supplier, or laborer having a just claim, as well as for the state, political subdivision, district, institution, or agency.
(C)(1) A bid guaranty filed pursuant to division (A)(2) of this section shall be conditioned to provide that if the bid is accepted, the bidder, after the awarding or the recommendation for the award of the contract, whichever the contracting authority designates, will enter into a proper contract in accordance with the bid, plans, details, specifications, and bills of material. If for any reason, other than as authorized by section 9.31 of the Revised Code or division (G) of this section, the bidder fails to enter into the contract, and the contracting authority awards the contract to the next lowest bidder, the bidder is liable to the state, political subdivision, district, institution, or agency for the difference between the bidder's bid and that of the next lowest bidder, or for a penal sum not to exceed ten per cent of the amount of the bid, whichever is less. If the state, political subdivision, district, institution, or agency does not award the contract to the next lowest bidder but resubmits the project for bidding, the bidder failing to enter into the contract, except as provided in division (G) of this section, is liable to the state, political subdivision, district, institution, or agency for a penal sum not to exceed ten per cent of the amount of the bid or the costs in connection with the resubmission, of printing new contract documents, required advertising, and printing and mailing notices to prospective bidders, whichever is less.
If the bidder enters into the contract, the bidder, at the time the contract is entered to, shall file a bond for the amount of the contract to indemnify the state, political subdivision, district, institution, or agency against all damage suffered by failure to perform the contract according to its provisions and in accordance with the plans, details, and specifications and to pay all lawful claims of subcontractors, material suppliers, and laborers for labor performed or material furnished in carrying forward, performing, or completing the contract; and agree and assent that this undertaking is for the benefit of any subcontractor, material supplier, or laborer having a just claim, as well as for the state, political subdivision, district, institution, or agency.
(2) A construction manager who enters into a contract pursuant to sections 9.33 to 9.333 of the Revised Code, if required by the public authority at the time the construction manager enters into the contract, shall file a letter of credit pursuant to Chapter 1305. of the Revised Code, bond, certified check, or cashier's check, for the value of the construction management contract to indemnify the state, political subdivision, district, institution, or agency against all damage suffered by the construction manager's failure to perform the contract according to its provisions, and shall agree and assent that this undertaking is for the benefit of the state, political subdivision, district, institution, or agency. A letter of credit provided by the construction manager is revocable only at the option of the beneficiary state, political subdivision, district, institution, or agency.
(D) Where the state, political subdivision, district, institution, or agency accepts a bid but the bidder fails or refuses to enter into a proper contract in accordance with the bid, plans, details, and specifications within ten days after the awarding of the contract, the bidder and the surety on any bond, except as provided in division (G) of this section, are liable for the amount of the difference between the bidder's bid and that of the next lowest bidder, but not in excess of the liability specified in division (B)(1) or (C) of this section. Where the state, political subdivision, district, institution, or agency then awards the bid to such next lowest bidder and such next lowest bidder also fails or refuses to enter into a proper contract in accordance with the bid, plans, details, and specifications within ten days after the awarding of the contract, the liability of such next lowest bidder, except as provided in division (G) of this section, is the amount of the difference between the bids of such next lowest bidder and the third lowest bidder, but not in excess of the liability specified in division (B)(1) or (C) of this section. Liability on account of an award to any lowest bidder beyond the third lowest bidder shall be determined in like manner.
(E) Notwithstanding division (C) of this section, where the state, political subdivision, district, institution, or agency resubmits the project for bidding, each bidder whose bid was accepted but who failed or refused to enter into a proper contract, except as provided in division (G) of this section, is liable for an equal share of a penal sum in connection with the resubmission, of printing new contract documents, required advertising, and printing and mailing notices to prospective bidders, but no bidder's liability shall exceed the amount of the bidder's bid guaranty.
(F) All bid guaranties filed pursuant to this section shall be payable to the state, political subdivision, district, institution, or agency, be for the benefit of the state, political subdivision, district, institution, or agency or any person having a right of action thereon, and be deposited with, and held by, the board, officer, or agent contracting on behalf of the state, political subdivision, district, institution, or agency. All bonds filed pursuant to this section shall be issued by a surety company authorized to do business in this state as surety approved by the board, officer, or agent awarding the contract on behalf of the state, political subdivision, district, institution, or agency.
(G) A bidder for a contract with the state or any political subdivision, district, institution, or other agency thereof, excluding therefrom the Ohio department of transportation, for a public improvement costing less than one-half million dollars may withdraw the bid from consideration if the bidder's bid for some other contract with the state or any political subdivision, district, institution, or other agency thereof, excluding therefrom the department of transportation, for the public improvement costing less than one-half million dollars has already been accepted, if the bidder certifies in good faith that the total amount of all the bidder's current contracts is less than one-half million dollars, and if the surety certifies in good faith that the bidder is unable to perform the subsequent contract because to do so would exceed the bidder's bonding capacity. If a bid is withdrawn under authority of this division, the contracting authority may award the contract to the next lowest bidder or reject all bids and resubmit the project for bidding, and neither the bidder nor the surety on the bidder's bond are liable for the difference between the bidder's bid and that of the next lowest bidder, for a penal sum, or for the costs of printing new contract documents, required advertising, and printing and mailing notices to prospective bidders.
(H) Bid guaranties filed pursuant to division (A) of this section shall be returned to all unsuccessful bidders immediately after the contract is executed. The bid guaranty filed pursuant to division (A)(2) of this section shall be returned to the successful bidder upon filing of the bond required in division (C) of this section.
(I) For the purposes of this section, "next lowest bidder" means, in the case of a political subdivision that has adopted the model Ohio and United States preference requirements promulgated pursuant to division (E) of section 125.11 of the Revised Code, the next lowest bidder that qualifies under those preference requirements.
(J) For the purposes of this section and sections 153.56, 153.57, and 153.571 of the Revised Code, "public improvement," "subcontractor," "material supplier," "laborer," and "materials" have the same meanings as in section 1311.25 of the Revised Code.
Structure Ohio Revised Code
Chapter 153 | Public Improvements
Section 153.011 | Using Domestic Steel Products in State Supported Projects.
Section 153.012 | Preference to Contractors Having Principal Place of Business in Ohio.
Section 153.02 | Debarment of Contractor From Contract Awards.
Section 153.03 | Contracts to Require Drug-Free Workplace Program.
Section 153.031 | Rc 153.03 Requirements Limited to State Improvements.
Section 153.04 | Forms for Providing Bidding Information - Life-Cycle Costs.
Section 153.05 | Actions to Enforce Bond.
Section 153.06 | Form of Bids.
Section 153.07 | Publishing Notice of Bids.
Section 153.08 | Opening Bids and Awarding Contract.
Section 153.09 | New Proposals When Necessary - Change in Work or Materials.
Section 153.10 | No Change in Plans Without Approval of Owner.
Section 153.11 | Change of Plans Becomes Part of Original Contract.
Section 153.12 | Awarding and Executing Contract.
Section 153.13 | Estimates of Labor and Materials - Funds in Escrow Account.
Section 153.15 | Assessment of Asbestos Hazard.
Section 153.17 | Requisition Upon Contractor for Additional Specific Force or Materials.
Section 153.18 | Certification of Additional Force or Materials.
Section 153.19 | Contract Shall Contain Provision as to Time of Completion.
Section 153.20 | Duty of Attorney General.
Section 153.21 | Building Commission.
Section 153.22 | Compensation of Commissioners.
Section 153.23 | Expenses of Building Commission.
Section 153.24 | Oath and Bond.
Section 153.27 | Architects - Superintendents - Employees.
Section 153.28 | Plans, Drawings, and Cost Estimates Filed With County Auditor.
Section 153.29 | Proceedings of Building Commission.
Section 153.30 | Record of Proceedings.
Section 153.31 | Plans and Estimates for Construction - Construction Project Manager or Consultants.
Section 153.311 | Construction of Public Building in Stages.
Section 153.32 | Contracts for Erection and Repair of Superstructures.
Section 153.33 | Bids on Other Plans May Be Considered.
Section 153.34 | Contents of Advertisement.
Section 153.35 | Plans Shall Be Kept on File in County Auditor's Office.
Section 153.36 | Approval of Plans for Courthouse or Jail.
Section 153.37 | Approval of Plans for County Home.
Section 153.38 | Approval of Plans for Bridge.
Section 153.39 | Approval of Plans for Children's Home.
Section 153.44 | Contracts Submitted to Prosecuting Attorney.
Section 153.45 | Commissioners May Annul Old and Make New Contracts.
Section 153.49 | Duty of County Treasurer.
Section 153.50 | Separate Bids for Work and Materials.
Section 153.502 | Construction Management or Design-Build Contracts; Prequalification of Bidders.
Section 153.503 | Adoption of Rules.
Section 153.51 | Separate Contracts - Single, Aggregate Contract.
Section 153.52 | Awarding of Contracts to Separate Bidders.
Section 153.53 | Adjusting Threshold in Section 153.01 for Inflation.
Section 153.54 | Bid Guaranty to Be Filed With Bid.
Section 153.56 | Creditor Shall Furnish Statement of Amount Due - Service of Notice of Furnishing.
Section 153.57 | Form of Bond.
Section 153.571 | Form of Bond.
Section 153.581 | Contracts for Construction Definitions.
Section 153.591 | Hiring Hall Contract or Agreement.
Section 153.61 | Agreement for Joint Construction and Management.
Section 153.62 | Issuing Change Order for Additional Work.
Section 153.63 | Agreement for Escrow Account for Contractor.
Section 153.65 | Professional Design Services Definitions.
Section 153.66 | Submitting Statement of Qualifications.
Section 153.67 | Announcing Contracts Available for Professional Design or Design-Build Services.
Section 153.68 | Instituting Prequalification Requirements.
Section 153.69 | Evaluating and Selecting Firms.
Section 153.691 | No Fee Estimate on Contract for Professional Design Services.
Section 153.692 | Obtaining Services of Criteria Architect or Engineer.
Section 153.693 | Evaluation of Design-Build Firms.
Section 153.694 | Conflicts of Interest.
Section 153.70 | Requiring Professional Liability Insurance.
Section 153.71 | Administrative Rules.
Section 153.72 | Authority of Design-Build Firm.
Section 153.73 | Construction of Statutes.
Section 153.80 | Reducing Bond.
Section 153.81 | Indemnity Provisions in Public Works Design Contracts.
Section 153.83 | Hearings Related to Contractor Labor Agreements.