                                 CODE OF VIRGINIA

COMPETITION IN AWARD OF CONTRACTS; CONTRACTORS TO GIVE SURETY; TERMS OF
CONTRACTS (§ 2.2-2275)

If any project or any portion thereof or any improvement thereof shall be
constructed, or furnished pursuant to a contract and the estimated cost thereof
exceeds $10,000, such contract with the Authority shall be awarded to the lowest
responsible bidder after advertisement for bids. The Authority may make rules
and regulations for the submission of bids and the construction, furnishing, or
improvement of any project or portion thereof to be owned by the Authority, the
Commonwealth or any agency, institution, or department thereof. No contract
shall be entered into by the Authority for construction, furnishing, or
improvement of any project, or portion thereof, or for the purchase of
materials, unless the contractor gives an undertaking with a sufficient surety
approved by the Authority, and in an amount fixed by the Authority in accordance
with § 2.2-4337, for the faithful performance of the contract. Such contract
shall be accompanied by an additional bond for the protection of those who
furnish labor and material or rental equipment for such amount and subject to
the same terms and conditions as established by the Authority in accordance with
§ 2.2-4337. All construction contracts shall provide, among other things, that
the person or corporation entering into such contract with the Authority will
pay for all materials furnished, rental equipment used and services rendered for
the performance of the contract, and that any person or corporation furnishing
such materials, rental equipment or rendering such services may maintain an
action to recover for the same against the obligor in the undertaking as though
such person or corporation was named therein, provided the action is brought
within one year after the time the cause of action accrued. The additional bond
shall be conditioned upon the prompt payment of actual equipment rentals and
shall not be conditioned upon or guarantee payment of equipment rentals, all or
any part of which, directly or indirectly, apply on the purchase price of such
equipment under the terms of a bailment lease or conditional sales contract or
by any other arrangement by which title to the equipment will be transferred to
the contractor and the rentals form any part of the consideration.
		Subject to the foregoing, the Authority may, but without intending by this
provision to limit any powers of the Authority, enter into and carry out such
contracts, or establish or comply with such rules and regulations concerning
labor and materials to rental equipment and other related matters in connection
with any project, or portion thereof, as the Authority deems desirable.

HISTORY: 1981, c. 569, § 2.1-234.27; 1998, cc. 498, 504; 2001, c. 844.