Utah Admin. Code R33-111-303 - Payment Bonds
(1) A payment bond
is required for construction contracts exceeding $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 R33-111-303(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 US 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) If the procurement unit fails to obtain a
payment bond, it shall be subject to Section
14-1-19.
Notes
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