                                 CODE OF VIRGINIA

BID BONDS; CONSTRUCTION CONTRACTS (§ 2.2-4336)

A. Except in cases of emergency, all bids or proposals for
nontransportation-related construction contracts in excess of $500,000 or
transportation-related projects authorized under Article 2 (&#xA7; 33.2-208 et
seq.) of Chapter 2 of Title 33.2 that are in excess of $350,000 and partially or
wholly funded by the Commonwealth shall be accompanied by a bid bond from a
surety company selected by the bidder that is authorized to do business in
Virginia, as a guarantee that if the contract is awarded to the bidder, he will
enter into the contract for the work mentioned in the bid. The amount of the bid
bond shall not exceed five percent of the amount bid.

B. No forfeiture under a bid bond shall exceed the lesser of (i) the difference
between the bid for which the bond was written and the next low bid, or (ii) the
face amount of the bid bond.

C. Nothing in this section shall preclude a public body from requiring bid bonds
to accompany bids or proposals for construction contracts anticipated to be less
than $500,000 for nontransportation-related projects or $350,000 for
transportation-related projects authorized under Article 2 (&#xA7; 33.2-208 et
seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the
Commonwealth.

HISTORY: 1982, c. 647, § 11-57; 1984, c. 160; 2001, c. 844; 2006, c. 925; 2011,
c. 789; 2017, c. 789; 2022, c. 413.