Public Contracting - Public Improvements and Related Contracts

ORS 279C.385
Return or retention of bid security


(1)

A contracting agency shall return the bid security of the successful bidder to the bidder after the bidder:

(a)

Executes the public improvement contract; and

(b)

Delivers a good and sufficient performance bond, a good and sufficient payment bond and any required proof of insurance.

(2)

A bidder who is awarded a contract and who fails promptly and properly to execute the contract and to deliver the performance bond, the payment bond and the proof of insurance, when bonds or insurance are required, shall forfeit the bid security that accompanied the successful bid. The bid security shall be taken and considered as liquidated damages and not as a penalty for failure of the bidder to execute the contract and deliver the bonds and proof of insurance.

(3)

The contracting agency may return the bid security of unsuccessful bidders to them when the bids have been opened and the contract has been awarded, and may not retain the bid security after the contract has been duly signed. [2003 c.794 §119; 2005 c.103 §21]

Notes of Decisions

Under Former Similar Statute (Ors 279.031)

Section applies only to situation where proper contract has been formed by acceptance of an extant bid and successful bidder refuses to execute such contract, and section does not require that bids not be withdrawn after they have been opened but prior to time they are accepted. Taggart v. Douglas County, 31 Or App 1137, 572 P2d 1050 (1977), Sup Ct review denied


Source

Last accessed
Jun. 26, 2021