All bids must be accompanied by an undertaking executed by a corporate surety authorized to do business in the State, or by cash or a certified check in an amount equal to at least 5 percent of the amount bid. Such undertaking, cash or check furnished to accompany a bid submitted on-line pursuant to NRS 408.343 must be furnished in accordance with the procedures set forth by the Director.
If the successful bidder fails to execute the contract in accordance with his or her bid and give any bond required by law and the contract and bond are not postmarked or delivered to the Department within 20 days after award of the contract, the undertaking, cash or certified check is forfeited and the proceeds must be paid into the State Highway Fund.
The failure of the successful bidder to furnish any bond required of the bidder by law within the time fixed for his or her execution of the contract constitutes a failure to execute the contract.
If the Director deems it is for the best interests of the State, the Director may, on refusal or failure of the successful bidder to execute the contract, award it to the second lowest responsible bidder. If the second lowest responsible bidder fails or refuses to execute the contract, the Director may likewise award it to the third lowest responsible bidder. On the failure or refusal to execute the contract of the second or third lowest bidder to whom a contract is so awarded, their bidders security is likewise forfeited to the State.
The bidders security of the second and third lowest responsible bidders may be withheld by the Department until the contract has been finally executed and the bond given as required under the provisions of the contract, at which time the security must be returned. The bidders security submitted by all other unsuccessful bidders must be returned to them within 10 days after the contract is awarded.