48-584. Bids; bond; award of contract; entering into contract; liability on bond

A. Bids shall be submitted accompanied by a bond payable to the municipality for an amount not less than ten per cent of the aggregate bid. Alternative bids may be accompanied by one bond at least equal to ten per cent of the amount of the highest proposal submitted.

B. The governing body of the city or town shall, in open session, publicly declare the bids, and may reject any or all when deemed for the public good, and shall reject all bids other than the lowest and best bid of a responsible bidder. The governing body may award the contract for the work or improvement to the lowest and best responsible bidder at the price named in his bid, upon motion, noted in its minutes, and upon a majority vote of its members.

C. When the resolution of intention to make the improvement and the resolution ordering the work has provided for alternative plans and specifications, and the notice has invited separate bids in accordance with the alternative plans and specifications, the governing body shall not award the contract for the improvement until fifteen days after the bids have been opened, examined and declared. If within such period the owners of a majority of the frontage of property fronting on the proposed improvement, or, when the cost of the improvement has been made chargeable upon a district, the owners of a majority of the frontage of property contained within the limits of the assessment district, in writing require that the proposed improvement be constructed in accordance with any particular one of the alternative plans and specifications, then the governing body shall so determine and require, and shall award the contract to the lowest and best responsible bidder. If no such written requirement is filed, then the governing body shall determine which of the alternative plans and specifications shall be adopted, considering the cost and efficiency thereof, and shall award the contract accordingly.

D. Notice of the award of contract shall be published twice in a daily newspaper or once in a weekly or semiweekly newspaper, published and of general circulation in the city or town.

E. At any time within fifteen days from the date of the first publication, any person having an interest in a lot liable to assessment, claiming that any of the previous acts or proceedings relating to the improvements are irregular, illegal or faulty, may file with the clerk a written notice specifying in what respect the acts and proceedings are irregular, illegal or faulty, and all objections to any act or proceeding which are not made prior to the notice of award shall be waived, except as to matters directly affecting the authority of the governing body. If the governing body finds any objection well taken, it may abandon the proceedings, or correct or modify any portion thereof, and proceed as in the first instance.

F. Within twenty days after the date of the first publication, if no objections have been filed, the successful bidder shall enter into a contract to make the improvement according to his bid. If objections are filed but are rejected by the governing body, the contract shall be entered into within five days after receiving notice from the clerk of such rejection. If the bidder fails to enter into the contract within such period provided, then the governing body without further proceedings shall again advertise for bids as in the first instance, and the bidder shall be liable upon his bond accompanying the bid for all costs and damages incurred and sustained by reason of the failure to enter into the contract.