2009-10-26 Regular Meeting, Public Hearing and Workshop Meeting of La Porte City Council

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4. BID SECURITY Each bid must be accompanied by a cashier's check, a certified check of the bidder, or a bid bond prepared, duly executed by the bidder as principal and having as surety thereon a surety company approved by the Owner, in the amount of five percent (5%) of the bid. Such checks or bid bonds will be returned to all except the three (3) lowest bidders within three (3) days after the opening of bids, and the remaining checks or bid bonds will be returned promptly after the Owner and the accepted bidder have executed the contract, or, if no award has been made within thirty (30) days after the date of the opening of bids, upon demand of the bidder at any time thereafter, so long as he has not been notified of the acceptance of his bid. 5. FAILURE TO ENTER INTO CONTRACT The successful bidder, upon his failure or refusal to execute and deliver the contract and bonds required within ten (10) working days after award notification, shall forfeit the submitted security deposit to the Owner as liquidated damages for such failure or refusal. 6. TIME OF COMPLETION AND LIQUIDATED DAMAGES Time is of the essence in this project and the contractor must diligently pursue the construction work so as to offer for final acceptance by the Owner within the time limit specified in the bid documents. Liquidated damages of $300.00 per day shall be chargeable for each calendar day the work remains incomplete past the stated time limit. The stated time limit for this project is 90 calendar days. 7 . QUALIFICATIONS OF BIDDER At the time of the opening of bids, each bidder will be presumed to be thoroughly familiar with the plans and contract documents (including all addenda). The failure or omission of any bidder to examine any form, instrument, or document shall in no way relieve any bidder from any obligation in respect of their bid. The Owner may make such investigations as deemed necessary to determine the ability of the bidder to perform the work, and the bidder shall furnish to the Owner all such information and data for this purpose as the Owner may request. The Owner reserves the right to reject any bid if the evidence submitted by, or investigation of, such bidder fails to satisfy the Owner that such bidder is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein. Conditional bids will not be accepted. 8. CONTRACT SECURITY The Contractor shall be required to furnish performance and payment bonds, executed on the forms enclosed herein, each bond in an amount at least equal to one hundred percent (100%) of the total contract price, as security for the faithful performance of the contract and for the payment of all persons performing labor or furnishing materials and equipment on the project. 9. FUNDING OUT CLAUSE If the lowest base bid submitted by a responsible bidder exceeds the amount of funds budgeted and funds are not available, the Owner may reject all bids. If awarded, the City of La Porte warrants funds are available to pay for this contract until the end of its current fiscal year and warrants that funds will be requested to make payment in each appropriation period from now until the end of the last renewable option year. However, if funds are not made available after such request, the City of La Porte may terminate this agreement with thirty (30) days written notice.