HOUSE BILL NO. 237
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 69, TITLE 29 OF THE DELAWARE CODE BY INCLUDING A DEFINITION FOR MAINTENANCE CONTRACTS AND GRANTING STATE AGENCIES AUTHORITY TO WAIVE PERFORMANCE BONDS FOR STATE MAINTENANCE CONTRACTS IF IT IS SO STATED IN THE BID SPECIFICATIONS AND TO REQUIRE INSURANCE FOR JOB PERFORMANCE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Section 6901, Chapter 69, Title 29 of the Delaware Code by adding a new subsection (8) which shall read as follows:
"(8) Maintenance contracts means any service contract covering roadside or road maintenance Including but not Ilmited to mowing, pesticide and growth regulator application or spraying, mulching, brush and tree trimming, tree removal, maintenance or operation of a bus route, snow removal, crack sealing and landscape maintenance.
Section 2. Amend Section 6909(a), Chapter 69 by deleting subsection (a) In Its
entirety, and substituting in lieu thereof the following:
"(a) Simultaneous with the execution of the formal contract where required by subsection (a) of §6908 this Title, the successful bidder shall also execute a good and sufficient bond to the State or the contracting county for the benefit of the agency, with corporate surety authorized to do business in this State, In a sum equal to one hundred (100) percent of the contract price, except as otherwise provided In this Section and further providing, however, that In a contract for the purchase of materiel, or In the execution of maintenance contracts as defined In this Title, the agency may reduce or waive such bond requirement from the successful bidder, If such reduction or waiver has been stated In the bid specifications."
Section 3. Amend Chapter 69, Section 6909, Title 29 of the Delaware Code by adding a
new subsection (g) thereto to read as follows:
"(g) In addition to the bond, letter of credit, or other financial security posed by the successful bidder In conjunction with the execution of the formal contract, each successful bidder, regardless of the type of the security posed or waived, as the case may be must purchase adequate Insurance for the performance of the contract and, by submission of a bid, does agree to indemnify and save harmless and to defend all legal or equitable actions brought against the State, any agency, officer, and/or employee of the State, for and from all claims of liability which is or may be the result of the successful bidder's actions, during the performance of the contract. The purchase or non-purchase of such insurance or the involvement of the successful bidder in any legal or equitable defense of any action brought against the successful bidder based upon work performed pursuant to the contract, will not waive any defense which the State, its agency, the contracting county and their respective officers and employees might otherwise have to such claims, specifically including the defense of sovereign immunity, where applicable, and by the terms of this Section, the State. contracting county and all agencies, officers, and employees thereof shall not be financially responsible for the consequences of work performed, pursuant to said contract."
Approved June 30. 1988.