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<br />Appendix D
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<br />~ 143-129. Procedure for letting (If public contracts.
<br />(a) Bidding Required. - No construction or repair work requiring the estimated expenditure of public money in an amount
<br />equal to or more than three hundred thous~d dollars ($300,000) or purchase of apparatus, supplies, materials, or equipment requiring
<br />an estimated expenditure of public money in an amount equal to or more than ninety thousand dollars ($90,000) may be performed,
<br />nor may any contract be awarded therefor; by any board or governing body of the State, or of any institution of the State government,
<br />or of any political subdivision of the State, unless the provisions of this section are complied with.
<br />For purchases of apparatus, supplies, materials, or equipment, the governing body of any political subdivision of the State may,
<br />subject to any restriction as to dollar amount, or other conditions that the governing body elects to impose, delegate to the manager,
<br />school superintendent, chief purchasing official, or other employee the authority to award contracts, reject bids, or readvertise to
<br />receive bids on behalf of the unit. Any per$on to whom authority is delegated under this subsection shall comply with the requirements
<br />of this Article that would otherwise apply to the governing body.
<br />(b) Advertisement and Letting of Contracts. - Where the contract is to be let by a board or governing body of the State
<br />government or of a State institution, proposals shall be invited by advertisement in a newspaper having general circulation in the State
<br />of North Carolina. Where the contract is to be let by a political subdivision of the State, proposals shall be invited by advertisement in
<br />a newspaper having general circulation in the political subdivision or by electronic means, or both. A decision to advertise solely by
<br />electronic means, whether for particular contracts or generally for all contracts that are subject to this Article, shall be approved by the
<br />governing board of the political subdivision of the State at a regular meeting of the board.
<br />The advertisements for bidders required by this section shall appear at a time where at least seven full days shall lapse between
<br />the date on which the notice appears and the date of the opening of bids. The advertisement shall: (i) state the time and place where
<br />plans and specifications of proposed work or a complete description of the apparatus, supplies, materials, or equipment may be had;
<br />(il) state the time and place for opening of the proposals; and (Ui) reserve to the board or governing body the right to reject any or all
<br />proposals.
<br />Proposals may be rejected for any reason determined by the board or governing body to be in the best interest of the unit.
<br />However, the proposal shall not be rejected for the purpose of evading the provisions of this Article. No board or governing body of
<br />the State or political subdivision thereof may assume responsibility for construction or purchase contracts, or guarantee the payments
<br />of labor or materials therefor except under provisions of this Article.
<br />All proposals shall be opened in public and the board or governing body shall award the contract to the lowest responsible bidder
<br />or bidders, taking into consideration quality, performance and the time specified in the proposals for the performance of the contract.
<br />In the event the lowest responsible bids are in excess of the funds available for the project or purchase, the responsible board or
<br />governing body is authorized to enter into negotiations with the lowest responsible bidder above mentioned, making reasonable
<br />changes in the plans and specifications as may be necessary to bring the contract price within the funds available, and may award a
<br />contract to such bidder upon recommendation of the Department of Administration in the case of the State government or of a State
<br />institution or agency, or upon recommendation of the responsible commission, council or board in the case of a subdivision of the
<br />State, if such bidder will agree to perform the work or provide the apparatus, supplies, materials, or equipment at the negotiated price
<br />within the funds available therefor. If a cOntract cannot be let under the above conditions, the board or governing body is authorized to
<br />readvertise, as herein provided, after having made such changes in plans and specifications as may be necessary to bring the cost of
<br />the project or purchase within the funds available therefor. The procedure above specified may be repeated if necessary in order to
<br />secure an acceptable contract within the t\jnds available therefor.
<br />No proposal for construction or repaif work may be considered or accepted by said board or governing body unless at the time of
<br />its filing the same shall be accompanied py a deposit with said board or governing body of cash, or a cashier's check, or a certified
<br />check on some bank or trust company in~ured by the Federal Deposit Insurance Corporation in an amount equal to not less than five
<br />percent (5%) of the proposal. In lieu of making the cash deposit as above provided, such bidder may file a bid bond executed by a
<br />corporate surety licensed under the laws of North Carolina to execute such bonds, conditioned that the surety will upon demand
<br />forthwith make payment to the obligee upon said bond if the bidder fails to execute the contract in accordance with the bid bond. This
<br />deposit shall be retained if the successful bidder fails to execute the contract within 10 days after the award or fails to give satisfactory
<br />surety as required herein.
<br />Bids shall be sealed and the opening of an envelope or package with knowledge that it contains a bid or the disclosure or
<br />exhibition of the contents of any bid by ""yone without the permission of the bidder prior to the time set for opening in the invitation
<br />to bid shall constitute a Class I misdemeanor.
<br />(c) Contract Execution and Secutity. - All contracts to which this section applies shall be executed in writing. The board or
<br />governing body shall require the person to whom the award of a contract for construction or repair work is made to furnish bond as
<br />required by Article 3 of Chapter 44A; or require a deposit of money, certified check or government securities for the full amount of
<br />said contract to secure the faithful perfOrmance of the terms of said contract and the payment of all sums due for labor and materials in
<br />a manner consistent with Article 3 of CMpter 44A; and the contract shall not be altered except by written agreement of the contractor
<br />and the board or governing body. The surety bond or deposit required herein shall be deposited with the board or governing body for
<br />which the work is to be performed. When a deposit, other than a surety bond, is made with the board or governing body, the board or
<br />governing body assumes all the liabilities, obligations and duties of a surety as provided in Article 3 of Chapter 44A to the extent of
<br />said deposit.
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<br />F-5
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