[Adopted 1-1-1981 by Ord. No. 80-23-780 as Ch. 132, Art. IV, of the 1981 Code]
Whenever the Borough shall undertake a local
or a general improvement, it shall, after passage of the ordinance
authorizing the same, advertise for bids and award contracts pursuant
to the provisions of N.J.S.A. 40:50-1 et seq.
Each bidder shall submit with his bid a certified
check in the amount of 10% thereof, payable to the Borough, as a guaranty
that he will comply with the provisions of this article. Checks of
unsuccessful bidders shall be returned to them after the award of
the contract, and the check of the successful bidder shall be returned
to him when the contract has been properly executed and bonds furnished
as herein provided.
The bidder to whom the award is made shall,
within 10 days thereafter, enter into a written contract with the
Borough, setting forth in detail the work to be performed and agreeing
to conform to the Standard. The contract shall likewise provide for
payments and withholdings by the Borough to the bidder in the manner
and upon the terms set forth in the Standard.
At the time of execution of the contract, the
successful bidder shall deliver to the Borough a surety corporation
bond in the amount of the bid, in a form and with sureties satisfactory
to the Borough, conditioned upon the faithful performance of the contract
by a date certain to the satisfaction of the Borough and to indemnify
and save harmless the Borough from all proceedings, suits or actions
of any name or description and to secure the payment of all claims
for services performed and material or equipment furnished to the
contractor in the prosecution of the work. The bond shall be further
conditioned upon the maintenance of the work for a period of one year
after its completion and acceptance by the Borough, including correction
and repair of all defects and damage, breaking up, settling and wear
thereof. The bond shall further provide that if the contractor should
fail to correct and repair any such defects and damage within five
days after written notice thereof is served upon the contractor or
the sureties, the Borough may make such corrections and repairs at
the cost and expense of the contractors and the sureties.
In the event that the executed contract and
bond herein provided for are not delivered to the Borough within 10
days after the award has been made, the same may be rescinded by the
Borough without notice, and the award may then be made to another
bidder upon the same terms and conditions as herein set forth or new
bids may be ordered. In either event, the ten-percent guaranty previously
deposited by the defaulting successful bidder shall become the property
of the Borough, not as a penalty but as liquidated damages.
