When the City deems it to be advisable, each bidder shall be required to submit as security with the bid, a bid bond, cash or other acceptable financial instrument in favor of and payable at sight to the City, in an amount determined by the City, but not to exceed 10 percent of the aggregate amount of the bid. If the bidder to whom the contract is awarded shall, for 30 days after receipt of such award, fail or neglect to enter into the contract and file any required performance bond and/or labor and material bond, the bid security shall be forfeited and the City Finance Director shall draw the money due on such bid security and pay the same, or any cash deposited, into the City Treasury. The bid security shall not be returned to the defaulting bidder in such case unless the City Council approves the return thereof in whole or in part. Upon good cause being shown, the City may extend the time for the bidder to enter the contract for a period not to exceed an additional 60 calendar days.
(Prior code § 3-108)