Cash in lieu of bid bonds; letters of credit

(a) In lieu of the bid bond provided for in Code Section 36-91-50, the governmental entity may accept a cashier’s check, certified check, or cash in the amount of not less than 5 percent of the total amount payable by the terms of the contract payable to and for the protection of the governmental entity for which the contract is to be awarded. (b) When the amount of any bid bond required under this article does not exceed $750,000.00, the governmental entity may, in its sole discretion, accept an irrevocable letter of credit issued by a bank or savings and loan association, as defined in Code Section 7-1-4, in the amount of and in lieu of the bond otherwise required under Code Section 36-91-50. History. — Code 1981, § 36-91-42, enacted by Ga. L. 2000, p. 498, § 1; Code 1981, § 36-91-51, as redesignated by Ga. L. 2001, p. 820, § 12; Ga. L. 2007, p. 209, § 1/HB 134. Editor’s notes. — Ga. L. 2001, p. 820, § 12, effective July 1, 2001, redesignated former Code Section 36-91-51 as present Code Section 36-91-71. 36-91-52. Bid and bidder defined; withdrawal of bids for appreciable errors; resubmission. (a) As used in this Code section, the term ‘‘bid’’ includes proposal and the term ‘‘bidder’’ includes offeror. (b) Any governmental entity receiving bids subject to this article shall permit a bidder to withdraw a bid from consideration after the bid opening without forfeiture of the bid security if the bidder has made an appreciable error in the calculation of his or her bid and if: (1) Such error in the calculation of his or her bid can be documented by clear and convincing written evidence; (2) Such error can be clearly shown by objective evidence drawn from inspection of the original work papers, documents, or materials used in the preparation of the bid sought to be withdrawn; (3) The bidder serves written notice upon the governmental entity which invited proposals for the work prior to the award of the contract and not later than 48 hours after the opening of bids, excluding Saturdays, Sundays, and legal holidays; 1402 36-91-53 (4) The bid was submitted in good faith and the mistake was due to a calculation or clerical error, an inadvertent omission, or a typographical error as opposed to an error in judgment; and (5) The withdrawal of the bid will not result in undue prejudice to the governmental entity or other bidders by placing them in a materially worse position than they would have occupied if the bid had never been submitted. (c) In the event that an apparent successful bidder has withdrawn his or her bid as provided in subsection (b) of this Code section, action on the remaining bids should be considered as though the withdrawn bid had not been received. In the event the project is relet for bids, under no circumstances shall a bidder who has filed a request to withdraw a bid be permitted to resubmit a bid for the work. (d) No bidder who is permitted to withdraw a bid pursuant to subsection (b) of this Code section shall for compensation supply any material or labor to, or perform any subcontract or other work agreement for, the person or firm to whom the contract is awarded or otherwise benefit, directly or indirectly, from the performance of the project for which the withdrawn bid was submitted. History. — Code 1981, § 36-91-43, enacted by Ga. L. 2000, p. 498, § 1; Code 1981, § 36-91-52, as redesignated by Ga. L. 2001, p. 820, § 12. Editor’s notes. — Ga. L. 2001, p. 820, § 12, effective July 1, 2001, redesignated former Code Section 36-91-52 as present Code Section 36-91-72. 36-91-53. Affiliated corporation defined; forfeit of security by affiliated corporation. (a) As used in this Code section, the term: (1) ‘‘Affiliated corporation’’ means, with respect to any corporation, any other corporation related thereto: (A) As a parent corporation; (B) As a subsidiary corporation; (C) As a sister corporation; (D) By common ownership or control; or (E) By control of one corporation by the other. (2) The term ‘‘bid’’ includes proposals. (b) In any case where two or more affiliated corporations bid for a contract under this Code section and any one or more of such affiliated corporations subsequently rescind or revoke their bid or bids in favor of another such affiliated corporation whose bid is for a higher amount 1403 36-91-71 and the contract is awarded at such higher amount to such other affiliated corporation, then the bid bond, proposal guaranty, or other security otherwise required under this article of each affiliated corporation rescinding or revoking its bid shall be forfeited. History. — Code 1981, § 36-91-44, enacted by Ga. L. 2000, p. 498, § 1; Code 1981, § 36-91-53, as redesignated by Ga. L. 2001, p. 820, § 12. 36-91-54. Action on breach of bond.