(1) After adopting a plan for the construction of canals, reservoirs, and works, the board of directors shall give notice, by publication thereof, for not less than twenty days, in a newspaper published in each of the counties into which any such irrigation district extends, provided a newspaper is published therein, and in such other newspapers as it may deem advisable, calling for bids for the construction of said work or any portion thereof. If less than the whole work is advertised, then the portion so advertised must be particularly described in such notice. The notice shall set forth that plans and specifications can be seen at the office of the board, and that the board will receive sealed proposals therefor, and that the contract will be let to the lowest responsible bidder, stating the time and the place for opening the proposals, which, at said time and place, shall be opened in public. As soon as convenient thereafter the board shall let said work, either in portions or as a whole, to the lowest responsible bidder, or it may reject any or all bids and readvertise for proposals, or it may proceed to construct the work under its own superintendence.
(2) Contracts for the purchase of material shall be awarded to the lowest responsible bidder. The persons to whom a contract may be awarded shall enter into a bond, with good and sufficient sureties, to be approved by the board, payable to said district for its use, for not less than ten percent of the amount of the contract price, conditioned for the faithful performance of said contract. The work shall be done under the direction and to the satisfaction of the engineer in charge and be approved by the board. The provisions of this section shall not apply in the case of any contract between the district and the United States; except that, before any contract for construction work shall be entered into between the United States and the district, plans and specifications covering the proposed work shall be prepared and filed with the secretary of the district.
Source: L. 05: p. 262, § 23. R.S. 08: § 3462. L. 17: p. 308, § 12. C.L. § 2001. CSA: C. 90, § 400. CRS 53: § 149-1-24. C.R.S. 1963: § 150-1-24.
ANNOTATION
An irrigation district may contract for a complete irrigation system. Gas Sec. Co. v. Antero & Lost Park Reservoir Co., 259 F. 423 (8th Cir. 1919).
District may require other security besides the required bond. The fact that a district was required to take a bond from the contractors for the faithful performance of the contract is no reason why it could not otherwise protect itself by retaining a certain amount of the monthly estimate or provide in the contract for such other protection as it might require. Noonan v. Stein, 56 Colo. 64, 136 P. 1181 (1913).
The bond may become valueless. The requirement of this section in no way militates against the construction which was upon the contract, but to the contrary, although not disclosed in the record, it evidently was a wise precaution upon behalf of the district to make other provisions for its protection, as it is conceded that the bond taken in this case has become practically valueless. The record shows that the contractors are insolvent. Noonan v. Stein, 56 Colo. 64, 136 P. 1181 (1913).
This protection is for the sole benefit of the district. The contract gave to the district the right to retain the fund for the purposes of protecting it generally against all breaches of the contract, and claims of every kind and nature growing out of it, and that this was done solely for the benefit of the district; hence, it was not such a fund as was specifically set apart for the payment of the unpaid bills of the contractors. Noonan v. Stein, 56 Colo. 64, 136 P. 1181 (1913).
Bonds must be returned if irrigation system is not constructed. If bonds were delivered as an advance payment in contemplation of the completion of a contract for the construction and delivery of an irrigation system, which was never fulfilled, equity requires the return of the bonds. Henry L. Doherty & Co. v. Steele, 71 Colo. 33, 204 P. 77 (1922).