CHAPTER 428

FORMERLY

SENATE BILL NO. 416

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO BID AND PERFORMANCE BONDS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend Section 6927(a), Title 29 of the Delaware Code by deleting paragraph (1) in its entirety and inserting the following in lieu thereof:

“(1) A deposit of either a good and sufficient bond to the State for the benefit of the agency involved; such bonds shall be issued with a corporate surety authorized to do business in this State, the surety shall be approved by the agency, and the bond form used shall be the standard form included as part of the bid documents issued by the Department of Administrative Services for this purpose; or”

Section 2. Amend Section 6927(d), Title 29 of the Delaware Code by deleting subsection (d) in its entirety and inserting the following in lieu hereof:

“(d) Performance Bonds. – Simultaneous with the execution of the formal contract where required by 6923(k)(1) and 6924(j)(1) of this title, the procuring agency may require the successful bidder to execute a good and sufficient bond to the State for the benefit of the agency. Such performance bonds shall:

(1) Be with a corporate surety authorized to do business in this State;

(2) Be in a sum equal to 100% of the contract award, except as otherwise provided in this subsection; and

(3) The bond form used shall be the standard form issued by the Department of Administrative Services for this purpose and shall be included in the projects’ bid documents.

Contracts for the purchase of material with a value less than the threshold amount(s) established by the Contracting and Purchasing Advisory Council may reduce or waive this bond requirement from the successful bidder. Such reduction or waiver shall be stated in the bid specifications."

Section 3. Amend Section 6962(d)(8), Title 29 of the Delaware Code by inserting the following phase after the phrase “the form of the bond and surety to be approved by the agency” and before the phrase “or a security of the bidders assigned to the agency”: “and the bond form used shall be the standard form issued by the Department of Administrative Services for this purpose.”

Section 4. Amend §6962(d)(9)(a) by adding the following phrase after the words "100 percent of the contract price":" and the bond form used shall be the standard form issued by the Department of Administrative Services."

Section 5. This Act shall become effective on October 1, 2002.

Approved July 30, 2002