OAR 731-005-0550: Bid Security

(1) Security Amount. If ODOT requires Bid security, it shall be 10% of the Offeror's Bid. ODOT shall not use Bid security to discourage competition. ODOT shall clearly state any Bid security requirements in its Solicitation Document. The Offeror shall forfeit Bid security after Award if the Offeror fails to execute the Contract and promptly return it with any required performance bond, payment bond and any required proof of insurance. See ORS 279C.365(5) and 279C.385. (2) Requirement for Bid Security. Unless ODOT has otherwise exempted a solicitation or class of solicitations from Bid security pursuant to ORS 279C.390, ODOT shall require Bid security for its solicitation of Bids for Public Improvements. This requirement applies only to Highway Construction Contracts with a value, estimated by ODOT, of more than $50,000. See ORS 279C.365(6). ODOT may require Bid security even if it has exempted a class of solicitations from Bid security. (3) Form of Bid Security. ODOT may accept only the following forms of Bid Security: (a) A surety bond from a surety company authorized to do business in the State of Oregon. If a surety bond is submitted, ODOT’s standard Bid bond form must be used, which is included with the Bid booklet. The original bond must be submitted with the surety company’s seal affixed, or in the case of an Electronic Offer, an electronic version of the bid bond may be submitted. (b) An irrevocable letter of credit issued by an insured institution as defined in ORS 706.008; or (c) A cashier’s check or Offeror’s certified check made out to the Oregon Department of Transportation. (4) Return of Security. ODOT shall return or release the Bid security of all unsuccessful Offerors after a Contract has been fully executed and all required bonds and insurance have been provided, or after all Offers have been rejected. ODOT may return the Bid security of unsuccessful Offerors prior to Award if the return does not prejudice Contract Award and the security of at least the Bidders with the three lowest Bids is retained pending execution of a Contract.