Bill Text: VA SB258 | 2022 | Regular Session | Prefiled
Bill Title: Virginia Public Procurement Act; bid bonds, construction contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-04-11 - Governor: Acts of Assembly Chapter text (CHAP0413) [SB258 Detail]
Download: Virginia-2022-SB258-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §2.2-4336 of the Code of Virginia is amended and reenacted as follows:
§2.2-4336. Bid bonds; construction contracts.
A. Except in cases of emergency, all bids or proposals for nontransportation-related
construction contracts in excess of $500,000 or
transportation-related projects authorized under Article 2 (§33.2-208 et seq.)
of Chapter 2 of Title 33.2 that are in excess of $250,000 and partially or
wholly funded by the Commonwealth shall be accompanied by a
bid bond from a surety company selected by the bidder that is authorized to do
business in Virginia, as a guarantee that if the contract is awarded to the
bidder, he will enter into the contract for the work mentioned in the bid. The
amount of the bid bond shall not exceed five percent of the amount bid.
B. For
nontransportation-related construction contracts in excess of $100,000 but less
than $500,000, where the bid bond requirements are waived, prospective
contractors shall be prequalified for each individual project in accordance
with §2.2-4317.
C. No
forfeiture under a bid bond shall exceed the lesser of (i) the difference
between the bid for which the bond was written and the next low bid, or (ii)
the face amount of the bid bond.
D. C. Nothing in this section
shall preclude a public body from requiring bid bonds to accompany bids or
proposals for construction contracts anticipated to be less than $500,000 for nontransportation-related projects or $250,000
for transportation-related projects authorized under Article 2 (§33.2-208 et
seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the
Commonwealth.
