Section 105IAC11-3-8. Bid and performance bonds

   (a) A bidder must submit a bid bond and a performance bond as designated on the proposal page, except as provided in subsection (c). The bonds must be:

(1) properly executed by a surety company satisfactory to the department; and

(2) payable to the state of Indiana.

  (b) An Indiana resident agent or a nonresident agent, licensed in Indiana, or an employee of the surety company must execute the bonds. All paper executed bid and performance bonds must be:

(1) accompanied by a valid power of attorney letter; and

(2) submitted as designated on the proposal page.

An electronic bid bond must be authenticated by a designated electronic medium.

  (c) For contracts of one hundred thousand dollars ($100,000) or less for:

(1) roadside mowing;

(2) vegetation control;

(3) demolition;

(4) landscaping;

(5) fencing;

(6) seeding and sodding;

(7) bridge painting; and

(8) guardrail installations;

a performance bond is not required. If the bidder elects not to furnish the performance bond, an amount equivalent to ten percent (10%) of the amounts payable will be deducted and retained by the department until final payment is made.

  (d) The bid bond must be in the penal sum of an amount equal to five percent (5%) of the amount bid. The performance bond must be in the penal sum of an amount not less than one hundred percent (100%) of the amount bid.

  (e) When the surety company furnishes a bond to a bidder in an amount exceeding its underwriting limitations, as shown by the latest U.S. Department of the Treasury's register, the surety company shall file the necessary reinsurance agreements with the department, on forms provided by the department, within fifteen (15) days from the date of notification to the contractor of an insufficient bond. The reinsurance agreements must be furnished by a surety company acceptable to the department.

  (f) Failure to furnish required documentation or assurances such that the department cannot execute the contract with the bidder will be cause for forfeiture of the bid bond and reduction in the bidder's prequalification. At the discretion of the commissioner:

(1) the award of the contract may be made to the next eligible bidder;

(2) the work may be readvertised; or

(3) all bids may be rejected and the work not readvertised.

(Indiana Department of Transportation; 105 IAC 11-3-8; filed Jul 25, 1991, 3:30 p.m.: 14 IR 2195; filed Jun 14, 1993, 5:30 p.m.: 16 IR 2541; readopted filed Nov 7, 2001, 3:20 p.m.: 25 IR 899; filed May 23, 2007, 2:58 p.m.: 20070620-IR-105070036FRA; readopted filed Oct 2, 2013, 11:39 a.m.: 20131030-IR-105130295RFA)