Ohio Revised Code|Section 153.54 | Bid guaranty to be filed with bid.

                                                
(A) Except with respect to a contract described  in section 9.334 or 153.693 of the Revised Code, each person  bidding for a contract with the state or any political  subdivision, district, institution, or other agency thereof,  excluding therefrom the department of transportation, for any  public improvement shall file with the bid, a bid guaranty in the  form of either: 
(1) A bond in accordance with division (B) of this section  for the full amount of the bid;
(2) A certified check, cashier's check, or letter of credit  pursuant to Chapter 1305. of the Revised Code, in accordance with  division (C) of this section. Any such letter of credit is  revocable only at the option of the beneficiary state, political  subdivision, district, institution, or agency. The amount of the  certified check, cashier's check, or letter of credit shall be  equal to ten per cent of the bid.
(B) A bid guaranty filed pursuant to division (A)(1) of this  section shall be conditioned to:
(1) Provide that, if the bid is accepted, the bidder, after  the awarding or the recommendation for the award of the contract,  whichever the contracting authority designates, will enter into a  proper contract in accordance with the bid, plans, details, and  specifications. If for any reason, other than as authorized by  section 9.31 of the Revised Code or division (G) of this section,  the bidder fails to enter into the contract, and the contracting  authority awards the contract to the next lowest bidder, the  bidder and the surety on the bidder's bond are liable to the  state, political subdivision, district, institution, or agency for  the difference between the bid and that of the next lowest bidder,  or for a penal sum not to exceed ten per cent of the amount of the  bond, whichever is less. If the state, political subdivision,  district, institution, or agency does not award the contract to  the next lowest bidder but resubmits the project for bidding, the  bidder failing to enter into the contract and the surety on the  bidder's bond, except as provided in division (G) of this section,  are liable to the state, political subdivision, district,  institution, or agency for a penal sum not to exceed ten per cent  of the amount of the bid or the costs in connection with the  resubmission of printing new contract documents, required  advertising, and printing and mailing notices to prospective  bidders, whichever is less.
(2) Indemnify the state, political subdivision, district,  institution, or agency against all damage suffered by failure to  perform the contract according to its provisions and in accordance  with the plans, details, and specifications therefor and to pay  all lawful claims of subcontractors, material suppliers, and  laborers for labor performed or material furnished in carrying  forward, performing, or completing the contract; and agree and  assent that this undertaking is for the benefit of any  subcontractor, material supplier, or laborer having a just claim,  as well as for the state, political subdivision, district,  institution, or agency.
(C)(1) A bid guaranty filed pursuant to division (A)(2) of  this section shall be conditioned to provide that if the bid is  accepted, the bidder, after the awarding or the recommendation for  the award of the contract, whichever the contracting authority  designates, will enter into a proper contract in accordance with  the bid, plans, details, specifications, and bills of material. If  for any reason, other than as authorized by section 9.31 of the  Revised Code or division (G) of this section, the bidder fails to  enter into the contract, and the contracting authority awards the  contract to the next lowest bidder, the bidder is liable to the  state, political subdivision, district, institution, or agency for  the difference between the bidder's bid and that of the next  lowest bidder, or for a penal sum not to exceed ten per cent of  the amount of the bid, whichever is less. If the state, political  subdivision, district, institution, or agency does not award the  contract to the next lowest bidder but resubmits the project for  bidding, the bidder failing to enter into the contract, except as  provided in division (G) of this section, is liable to the state,  political subdivision, district, institution, or agency for a  penal sum not to exceed ten per cent of the amount of the bid or  the costs in connection with the resubmission, of printing new  contract documents, required advertising, and printing and mailing  notices to prospective bidders, whichever is less.
If the bidder enters into the contract, the bidder, at the  time the contract is entered to, shall file a bond for the amount  of the contract to indemnify the state, political subdivision,  district, institution, or agency against all damage suffered by  failure to perform the contract according to its provisions and in  accordance with the plans, details, and specifications and to pay  all lawful claims of subcontractors, material suppliers, and  laborers for labor performed or material furnished in carrying  forward, performing, or completing the contract; and agree and  assent that this undertaking is for the benefit of any  subcontractor, material supplier, or laborer having a just claim,  as well as for the state, political subdivision, district,  institution, or agency.
(2) A construction manager who enters into a contract  pursuant to sections 9.33 to 9.333 of the Revised Code, if  required by the public authority at the time the construction  manager enters into the contract, shall file a letter of credit  pursuant to Chapter 1305. of the Revised Code, bond, certified  check, or cashier's check, for the value of the construction  management contract to indemnify the state, political subdivision,  district, institution, or agency against all damage suffered by  the construction manager's failure to perform the contract  according to its provisions, and shall agree and assent that this  undertaking is for the benefit of the state, political  subdivision, district, institution, or agency. A letter of credit  provided by the construction manager is revocable only at the  option of the beneficiary state, political subdivision, district,  institution, or agency.
(D) Where the state, political subdivision, district,  institution, or agency accepts a bid but the bidder fails or  refuses to enter into a proper contract in accordance with the  bid, plans, details, and specifications within ten days after the  awarding of the contract, the bidder and the surety on any bond,  except as provided in division (G) of this section, are liable for  the amount of the difference between the bidder's bid and that of  the next lowest bidder, but not in excess of the liability  specified in division (B)(1) or (C) of this section. Where the  state, political subdivision, district, institution, or agency  then awards the bid to such next lowest bidder and such next  lowest bidder also fails or refuses to enter into a proper  contract in accordance with the bid, plans, details, and  specifications within ten days after the awarding of the contract,  the liability of such next lowest bidder, except as provided in  division (G) of this section, is the amount of the difference  between the bids of such next lowest bidder and the third lowest  bidder, but not in excess of the liability specified in division  (B)(1) or (C) of this section. Liability on account of an award to  any lowest bidder beyond the third lowest bidder shall be  determined in like manner.
(E) Notwithstanding division (C) of this section, where the  state, political subdivision, district, institution, or agency  resubmits the project for bidding, each bidder whose bid was  accepted but who failed or refused to enter into a proper  contract, except as provided in division (G) of this section, is  liable for an equal share of a penal sum in connection with the  resubmission, of printing new contract documents, required  advertising, and printing and mailing notices to prospective  bidders, but no bidder's liability shall exceed the amount of the  bidder's bid guaranty.
(F) All bid guaranties filed pursuant to this section shall  be payable to the state, political subdivision, district,  institution, or agency, be for the benefit of the state, political  subdivision, district, institution, or agency or any person having  a right of action thereon, and be deposited with, and held by, the  board, officer, or agent contracting on behalf of the state,  political subdivision, district, institution, or agency. All bonds  filed pursuant to this section shall be issued by a surety company  authorized to do business in this state as surety approved by the  board, officer, or agent awarding the contract on behalf of the  state, political subdivision, district, institution, or agency.
(G) A bidder for a contract with the state or any political  subdivision, district, institution, or other agency thereof,  excluding therefrom the Ohio department of transportation, for a  public improvement costing less than one-half million dollars may  withdraw the bid from consideration if the bidder's bid for some  other contract with the state or any political subdivision,  district, institution, or other agency thereof, excluding  therefrom the department of transportation, for the public  improvement costing less than one-half million dollars has already  been accepted, if the bidder certifies in good faith that the  total amount of all the bidder's current contracts is less than  one-half million dollars, and if the surety certifies in good  faith that the bidder is unable to perform the subsequent contract  because to do so would exceed the bidder's bonding capacity. If a  bid is withdrawn under authority of this division, the contracting  authority may award the contract to the next lowest bidder or  reject all bids and resubmit the project for bidding, and neither  the bidder nor the surety on the bidder's bond are liable for the  difference between the bidder's bid and that of the next lowest  bidder, for a penal sum, or for the costs of printing new contract  documents, required advertising, and printing and mailing notices  to prospective bidders.
(H) Bid guaranties filed pursuant to division (A) of this  section shall be returned to all unsuccessful bidders immediately  after the contract is executed. The bid guaranty filed pursuant to  division (A)(2) of this section shall be returned to the  successful bidder upon filing of the bond required in division (C)  of this section.
(I) For the purposes of this section, "next lowest bidder"  means, in the case of a political subdivision that has adopted the  model Ohio and United States preference requirements promulgated  pursuant to division (E) of section 125.11 of the Revised Code,  the next lowest bidder that qualifies under those preference  requirements.
(J) For the purposes of this section and sections 153.56,  153.57, and 153.571 of the Revised Code, "public improvement,"  "subcontractor," "material supplier," "laborer," and "materials"  have the same meanings as in section 1311.25 of the Revised Code.