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UNC Q, I SCHOOL OF GOVERNMENT 2. Formal bids must be received sealed — Formal bids must be received sealed and in paper form. Unlike formal purchase bids, formal construction bids cannot be received electronically [G.S. 143-129.9]; no formal bids may be received by fax or phone. 3. Formal bids must remain sealed — Knowingly opening a formal construction bid envelope or package prior to the date and time of opening without the bidder's permission is a Class 1 misdemeanor. [G.S. 143-129(b)] Step 4: Open Bids 1. Informal bids — Informal bids are not required to be opened at a public bid opening. [G.S. 143-1311 2. Formal bids — Formal bids must be opened in public at the time, date, and location advertised in the notice. [G.S. 143-129(b)] a. Minimum number of bids for formal bid opening— Bids in the formal bidding range cannot be opened unless the local government receives 3 bids from qualified and reputable contractors regularly engaged in their respective lines of work. If 3 bids are not received, the local government must re -advertise. If 3 bids are still not received, the local government may award to the lowest responsive, responsible bidder, even if only one bid is received. Bids received without an accompanying bid deposit/bond (see 31b below) cannot be counted toward 3 -bid minimum. [G.S. 143- 132; G.S. 143-129(b)] b. Bid deposit/bond — Bids on projects in the formal bidding range must be accompanied by a bid deposit in the amount of at least 5% of the bid and must be in the form of cash, cashier's check, certified check, or bond. The bid deposit/bond must accompany the bid at the time the bid is filed with the local government; bids received without an accompanying bid deposit/bond cannot be opened and do not count toward the 3 -bid minimum (see 2a above). The winning bidder forfeits his bid deposit/bond if he does not execute the contract within 10 days after award or fails to provide performance and payment bonds (See Step 8, 1 and 3). [G.S. 143-129(b); G.S. 143-132] c. When bidders may withdraw their bids — A formal bid can be withdrawn without penalty (meaning the bid deposit is not forfeited) at any time before the bid opening. However, after bids have been opened, a bidder can withdraw his bid without penalty only if the bid price was based on a substantial error or omission that was clerical (not a judgment error), and the bid was submitted in good faith. The bidder must submit a written request to withdraw the bid within 72 hours after the bid opening unless the bid instructions allow a longer time. The local government must promptly hold a hearing on the bidder's request, and must issue a written decision within 5 days of the hearing. The bidder may appeal a denial to mbar 1 \n 4 1 Construction Contracting Basic Legal Requirements Updated September 2013 F-9 Page 80