Utah Admin. Code R33-11-303 - Payment Bonds
(1) A payment bond
is required for all construction contracts in excess of $50,000, in the amount
of 100% of the contract price. If a contractor fails to deliver the required
payment bond, the contractor's bid or offer shall be rejected, its bid security
may be enforced, and award of the contract shall be made to the responsible
bidder or offeror with the next lowest responsive bid or highest ranked offer.
For executive branch procurement units:
(a)
bid bonds, payment bonds and performance bonds submitted by vendors to
executive branch procurement units must be from sureties meeting the
requirements of Subsection R33-11-303(1)(b) and must be on the required bond
forms; and
(b) a surety firm must
be authorized to do business in Utah and be listed in the U.S. Department of
the Treasury Circular 570, "Companies Holding Certificates of Authority as
Acceptable Securities on Federal Bonds and as Acceptable Reinsuring Companies,"
for an amount not less than the amount of the bond to be issued.
(2) The procurement official may
waive any bonding requirement if it is determined in writing by the procurement
official that:
(a) bonds cannot reasonably be
obtained for the work involved;
(b)
the cost of the bond exceeds the risk to the procurement unit; or
(c) bonds are not necessary to protect the
interests of the procurement unit.
(3) If the procurement unit fails to obtain a
payment bond it shall be subject to Section
14-1-19.
Notes
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