Section 7.08. Bonds and sureties.

 

(1)   Requirements. The department may require under any of the conditions listed below, bonds or sureties in order to secure performance of the bid contract. Sureties may be in the form of certified or cashier's checks, cash, irrevocable letters of credit, bonds or other equivalent sureties. Bonding or insurance companies issuing bonds shall be authorized by the commissioner of insurance to do business in this state.

(a) A bid surety may be required when failure to sign a contract may result in serious harm to the agency.

(b) A payment surety may be required to ensure payment to subcontractors.

(c) A performance surety may be required when failure to perform the contract on the part of the contractor will result in damages to the program, agency, state, or award.

(2)   Application. If sureties are required on a bid or award, the requirement shall be applied to all bidders and contractors on that bid.

History: Cr. Register, September, 1986, No. 369 , eff. 10-1-86.