2023 Indiana Code › Title 36. Local Government › Article 9. Transportation and Public Works › Chapter 27. Drainage Law › 36-9-27-78. Contracts; Bidding; Required Provisions; Surety Bonds

Sec. 78. (a) Whenever the board is ready to let contracts, it shall publish notice in accordance with IC 5-3-1. The notice must:
(1) state that at a date, time, and place the board will receive bids on the work;
(2) generally and concisely describe the nature of the work to be done and materials to be furnished;
(3) invite sealed bids; and
(4) state that prospective bidders may obtain plans, specifications, and forms from the county surveyor in charge of the work.
A defect in the form of the notice does not invalidate proceedings under the notice.
(b) Each bidder shall deposit with the bidder's bid, at the bidder's option, either a certified check made payable to the board in the sum of five percent (5%) of the bid or a bid bond in the sum of five percent (5%) of the bid. If a bidder elects to deposit a bid bond, the bond must be payable to the board with sufficient sureties, and the bond must be conditioned upon the bidder's execution of a contract in accordance with the bidder's bid if accepted by the board and must provide for the forfeiture of five percent (5%) of the amount of the bid upon the bidder's failure to do so. The board shall return all checks and bonds submitted by unsuccessful bidders, and shall return a successful bidder's check or bond when the successful bidder enters into a contract with the board.
(c) At the hour specified in the notice for receiving the bids, the board shall open and examine all bids. The board shall then promptly award the contract or contracts to the lowest bidder or bidders it finds to be qualified. In determining whether a bidder is qualified, the board shall consider the complexity and magnitude of the work to be performed, and the skill and experience of the bidder. Within five (5) days after the acceptance of a bid, the successful bidder shall enter into a contract with the board that complies with subsection (d). If a successful bidder fails to enter into such a contract, the successful bidder forfeits to the board, as liquidated damages, the check or bond deposited under subsection (b).
(d) The contract between the board and a successful bidder must provide:
(1) that the contractor will perform the work under the supervision of the county surveyor and in accordance with the plans, specifications, and profiles adopted by the board;
(2) that a claim for payment under the contract will not be approved by the board until the work for which the claim is presented has been approved by the county surveyor;
(3) the time within which the work must be completed;
(4) that fifteen percent (15%) of the contract price shall be withheld by the board for a period of sixty (60) days after the completion of the work, for the purpose of securing payment of suppliers, laborers, and subcontractors; and
(5) for other terms that the board considers appropriate.
(e) Upon execution of the contract, the successful bidder shall give to the board a bond payable to the board, in an amount fixed by the board but not less than the amount of the bid, and with a corporate surety licensed to do business in Indiana. The bond must be conditioned on the faithful performance of the contract and the payment of all expenses and damages incurred under the contract, including payment of all suppliers, laborers, and subcontractors. However, in lieu of a corporate surety bond, the board may accept:
(1) a cash bond;
(2) a property bond; or
(3) a bond from a sufficiently financed private bonding company.
[Pre-Local Government Recodification Citations: 19-4-7-5 part; 19-4-7-6; 19-4-7-7 part.]
As added by Acts 1981, P.L.309, SEC.101. Amended by Acts 1981, P.L.45, SEC.82; Acts 1981, P.L.317, SEC.27; P.L.350-1983, SEC.3; P.L.127-2017, SEC.359.