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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 260. Office of Management and Enterprise Services |
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Chapter 65. Construction and Properties |
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Subchapter 1. Construction Contracting |
SECTION 260:65-1-11. Contract award
Latest version.
- (a) Bids are awarded to the lowest responsible bidder as determined by the review of the bids pursuant to 260:65-1-10. Approximately 15 to 20 days after the bid opening, the successful bidder shall be notified by the Department of his selection and shall be provided copies of the contract to execute. The contractor shall be given a specific period of time, not to exceed sixty days, in which to execute the contract and obtain the necessary bonds and insurance. [61 O.S., Section 113(A)](b) The notice to proceed, or WORK ORDER, shall not be issued until the contract has been executed by all parties. Work shall not commence until the WORK ORDER has been received by the contractor.(c) Projects over the amount set in 61 O.S., Section 113(B) require three bonds. The bonds shall be prepared on the forms provided by the Department. All bonds required by Title 61 shall be provided by insurance carriers, bonding companies or surety companies that are prequalified by the Department as good and sufficient in accordance with criteria established in 260:65-1-9(a). [61 O.S., Section 204A(11)(1) Performance bond. A bond with good and sufficient security valued at not less than the total value of the proposed contract which shall ensure the proper and prompt completion of the work in accordance with the contract and shall ensure that the contractor shall pay all indebtedness incurred by the contractor and his subcontractors and all suppliers for such labor, material and repair of and parts for equipment as are used and consumed in the performance of the contract.(2) Defect bond. A good and sufficient bond in an amount equal to the total value of the contract to protect the State against defective workmanship and materials for a period of one year after acceptance of the project.(3) Payment bond. A good and sufficient bond in an amount equal to the total value of the contract to protect the State against claims or liens from subcontractors or suppliers for services or materials used in the project.(d) Letters of credit. Irrevocable letters of credit may be substituted for the bonds listed in (c) of this Section. Each letter of credit must be for the total value of the contract. All letters of credit must be executed on forms prescribed by the Administrator.(e) Insurance.(1) Public liability insurance of not less than $100/300,000, property damage insurance of not less than $50/100,000 and workers' compensation insurance during construction are required for all projects, regardless of project size.(2) Proof of workers' compensation insurance shall be required for all projects exceeding the amount stated in 61 O.S., Section 113(B). The minimum level of coverage shall be the statutory requirement specified by Oklahoma law.(3) For projects less than the amount stated in 61 O.S., Section 113(B), a sworn affidavit certifying an exemption to the requirement of workers' compensation insurance coverage may be accepted in lieu of proof of workers' compensation insurance. The sworn affidavit shall be executed on a form prescribed by the Administrator.(f) Additional insurance. Additional forms of insurance or increases in the insurance amounts may be required. Any additions or increases shall be contained in the bid documents.