Bill Text: WV SB611 | 2022 | Regular Session | Comm Sub
Bill Title: Removing cap on bidder's contract bond
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2022-04-20 - Chapter 260, Acts, Regular Session, 2022 [SB611 Detail]
Download: West_Virginia-2022-SB611-Comm_Sub.html
WEST virginia legislature
2022 regular session
Committee Substitute
for
Senate Bill 611
By Senator Clements
[Originating in the Committee on Transportation and Infrastructure; reported on February 16, 2022]
A BILL to amend and reenact §17-4-20 of the Code of West Virginia, 1931, as amended, relating to removing the cap on contract bidder’s surety or collateral bond; and updating outdated language.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 the 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 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.
