Section 3     Award and Execution of Contract

GP‑3.01       Award of Contract (See GP‑Section 2)

Written notice of award shall be sent to the successful bidder.  A Notice of Award may be rescinded at any time prior to execution of the Contract by the Administrator.

GP‑3.02       Return of Proposal Guaranty

All proposal guaranties, except those of the three lowest bidders, will be returned immediately following opening and the review of the proposals.  The guaranty of the three lowest bidders will be returned following the execution of the Contract and approval by the Board, if required.  The Contractor has the right to substitute a bid bond for other bid security at any time prior to return of the proposal guaranty.

GP‑3.03       Performance Bond and Payment Bond Requirements

A.            Acceptable security for performance and payment shall be as stated in COMAR 21.06.07.01B.

B.            Performance and Payment Bonds.  A performance and payment bond is required for all construction contracts in excess of Fifty Thousand Dollars ($50,000), each in the amount equal to at least One Hundred (100) percent of the Contract price.  The bonds shall be delivered by the bidder to the Administration no later than the time the Contract is to be executed.  If the bidder fails to deliver the required bonds, his/her bid shall be rejected, his/her bid security shall be enforced, and award of the Contract may be made to the next lowest responsive and respon­sible bidder.

1.                   The required Performance Bond shall be in the form specified in COMAR 21.07.02.10, Exhibit A.

2.                   The required Payment Bond shall be in the form specified in COMAR 21.07.02.10, Exhibit B.

GP‑3.04       Execution of Contract

A.            The Contract shall be effective only upon receipt by the Administra­tion of the proper, executed Contract Forms, and Performance and Payment Bonds (if required), approval by the Board of Public Works, (if required), and execution of the Contract by the Administration.

B.            After a Notice of Award, as provided in GP‑3.01, has been issued to a bidder, the Administration shall forward the formal Contract Forms and the appropriate forms for the Payment and Performance Bonds (if any) to the bidder for execution.  The bidder will execute the Contract Forms and return same, together with fully executed Payment and Performance Bonds (if any), to the Administration within ten (10) days after receipt of same.  After receipt of properly executed Contract Forms and Payment and Performance Bonds, (if any), the Administration will execute the Contract within sixty (60) days and forward the bidder a copy; provided, however, that the Board has approved the Contract if such approval is required.  If the Administration fails to execute the Contract and the period of irrevocability has expired, the bidder may, as its sole remedy, withdraw its bids.

GP‑3.05       Failure to Execute Contract

Failure of the bidder to execute the Contract and file acceptable security as defined in GP‑3.03 within the time aforesaid shall be just cause for the annulment of the award and the forfeiture of the Proposal Guaranty which shall become the property of the State of Maryland, not as a penalty but in liquidation of damages sustained.  Award may then be made to the next lowest responsive, responsible bidder or the work may be re‑advertised and constructed under contract or otherwise, as the Administration may decide.