N.J. Admin. Code § 12A:130-1.8

Current through Register Vol. 57, No. 1, January 6, 2025

Section 12A:130-1.8 - Bid and performance guarantees

(a) Unless expressly waived by ACCCA based on ACCCA's evaluation of the factors set forth in N.J.A.C. 12A:130-1.2(b), successful bids submitted relative to service contract awards involving expenditures equaling or exceeding the threshold amount shall be accompanied by bid security which qualifies under (c) below ("bid security") amounting to not less than either 10 percent of the total bid price or any other amount which may be established not exceeding 100 percent of the total bid price.

(b) At the discretion of ACCCA, bid security may be required for bids amounting to less than the threshold amount. ACCCA shall exercise its discretion after evaluating the factors set forth in N.J.A.C. 12A:130-1.2(b).

(c) The bid security, if required, shall be submitted in the form of a certified check payable to ACCCA, bank cashier's check made payable to ACCCA, or surety corporation bid bonds in favor of ACCCA.

(d) Failure to submit a bid security as and when required shall result in rejection of the bid.

(e) In the event that any bidder fails to accept an award in accordance with his or her bid, the bid security submitted shall be immediately forfeited.

(f) All bid security shall be returned to unsuccessful bidders as soon as possible after the award is made. The bid security furnished by successful bidders shall be returned after the delivery to ACCCA of a properly executed contract and related documents.

(g) ACCCA, in its discretion, may require a successful bidder, as a condition of a contract, to post a performance bond, to personally guarantee performance by an entity in which such guarantor is an equity owner or to provide such other security for performance as ACCCA may determine (the "performance security"). ACCCA shall exercise its discretion after evaluating the factors set forth in N.J.A.C. 12A:130-1.2(b).

(h) Unless expressly waived by ACCCA based on ACCCA's evaluation of the factors set forth in N.J.A.C. 12A:130-1.2(b), successful construction contract awards equaling or exceeding the threshold amount shall be accompanied by performance security equal to the total contract amount.

(i) At the discretion of ACCCA, performance security may be required for contracts amounting to less than the threshold amount. ACCCA shall exercise its discretion after evaluating the factors set forth in N.J.A.C. 12A:130-1.2(b).

(j) Failure to submit performance security as and when required shall constitute a default under an existing contract with the successful bidder or a refusal by the successful bidder to enter into a contract, as the case may be.

(k) All performance security shall be returned to the successful bidder as soon as is appropriate following full and proper performance by the successful bidder of the applicable contract.

N.J. Admin. Code § 12A:130-1.8