NJDOT Section 103: Award and Execution of Contract

SECTION 103 – AWARD AND EXECUTION OF CONTRACT

103.01 Award of Contract

The Department will award the Contract to the lowest responsible Bidder whose bid conforms in all respects to the requirements set forth in the Contract. The Department will award the Contract based on the Total Contract Price. The Department will award the Contract or reject all bids within 30 State Busin ess Days after the bids are received. The Department may conditionally award the Contract pending the approval of the Federal Government, another State governmental body, or private party. If the Department does not award the Contract or conditionally award the Contract within 30 State Business Days, all Bidders have the right to withdraw their bids. However, the Department, with the agreement of the lowest responsible Bidder, the second lowest responsible Bidder, or both Bidders, may extend the time that the Department may make an Award or Conditional Award by mutual consent. Any agreement to extend the time for the Department to make an Award may only be made with the condition to enter into the Contract without any alteration of the terms of the Contract, including but not limited to the Contract Time, and the bid prices for the Items in the proposal. At the time of Award or Conditional Award, if the Bidder is not a resident of the State, such Bidder shall appoint, on the form provided by the Department, a proper agent located in the State on whom service of process can be made in the event of litigation of any type arising under the Contract or as a result of performance of the Contract. Said agency shall remain in effect during the performance of the Contract and for 6 years following Acceptance. The Award or Conditional Award is not binding upon the Department until the Department has executed the Contract. No person shall perform any Work in furtherance of the Contract until notified that the Contract has been executed, and then only as specified in 108.02. The term “State Business Day” as used in this Subsection is synonymous with the term “Working Day” as used in

N.J.S.A. 27:7-31 and N.J.S.A. 27:7-33 and is any day exclusive of Saturdays, Sundays, State recognized legal holidays, and such other holidays or State office closings as declared by the State.

103.02 Cancellation of Award

The Department reserves the right to cancel an Award or Conditional Award at any time before the execution of said Contract by all parties without incurring any liability of any kind.

103.03 Release of Proposal Bond

The Department will release all Proposal Bonds except those of the 2 lowest Bidders within 5 days after opening of bids. The Department will release the Proposal Bond of the lowest and next lowest Bidders when the Contract and performance bond and payment bond have been executed and delivered as specified in 103.04, or, if not executed, when other disposition of the matter has been made by the Department.

103.04 Execution of The Contract

Within 14 days of the date of Award or Conditional Award, the Bidder shall properly and duly execute the Contract and deliver to the Department the following:

1.If escrowing bid documents, the custody agreement as specified in 103.05.

2.Performance bond and payment bond as specified in 151.03.01.

3.Request for Authorization Form for the New Jersey Pollutant Discharge Elimination System 5G3 – Construction Activity Stormwater General Permit (NJG0088323) when required as shown on the Plans.

4.Proof of the registrations specified in 102.01 for the Department of Treasury and the Department of Labor.

5.If the case of non-resident Bidders, the completed form regarding “Appointment of Agent” for compliance with

N.J.S.A. 14A:15-2, et seq. If the Contract is not executed by the Department within 60 days following receipt from the successful Bidder of the signed Contract and the performance bond and payment bond, the successful Bidder may withdraw its bid without penalty. Where the Bidder chooses not to withdraw its bid before the Department executes the Contract, the Bidder shall be deem ed to have waived any claim for additional payment or for an extension of time. The Contract does not become effective until it has been fully executed by all parties.

103.05 Escrow of Bid Documents

A.Purpose. The bid documents are the supporting information, calculations, quotes, and other information used to prepare the bid. The Department may use the Contractor’s bid documents to negotiate changes and claims if they are escrowed and a signed custody agreement is provided. The information contained in the bid documents does not modify the terms and conditions of the Contract. If the Contractor fails to escrow bid documents within the time specified in 103.04, the Department will not make payment for a disproportionate allocation of costs for work for which no Item is provided in the Contract, as specified in 102.08, in the renegotiation of costs of Items when there is a major decrease in quantity as specified in 104.03.03.

B.Stipulations and Acknowledgements. Escrowed bid documents are the property of the Contractor and are not public records. If a third party requests a copy of the escrowed bid documents, the Contractor, and not the Department, must take the legal steps needed to defend the confidentiality of the escrowed bid.

C.Form and Contents. The Department will consider escrowed bid documents reliable only if information is provided for all Items, and the total cost shown in the bid documents for each Item equals the bid price for the Item. The Contractor may submit escrowed bid documents in its usual cost -estimating format. It is not the intent of the Department to cause the Contractor to expend additional effort in preparing its bid.

D.Custody. Escrow bid documents in sealed boxes with a custody agent, and provide a copy of the fully executed custody agreement provided by the Department. Include with the custody agreement a certification that the escrowed bid documents have not been modified, corrected, or otherwise revised in any manner after the opening of bids. The Department may access the escrowed bid documents with the Contractor’s written authorization. After Acceptance and upon request from the Contractor, the Department will provide a release for the bid documents provided that there are no pending claims.

103.06 Failure To Execute Contract

Failure on the part of the Bidder, to whom the Contract has been awarded, to execute the Contract as specified in 103.04, in the manner and within the time specified, is just cause for annulment of the Award or Conditional Award and for the exclusion of the Bidder from bidding on subsequent projects for such period as the Department deems appropriate. If the Award is annulled, the Proposal Bond, as specified in 102.09, is forfeited, and the Department has the right to recover under the terms and provisions of the Proposal Bond. The Department has the right to award the Contract to the next lowest responsible Bidder, or to readvertise and construct the Work under the Contract, or otherwise, as the Department decides in its sole discretion. The successful Bidder may file with the Department a written notice, signed by the Bidder or the Bidder’s authorized representative, stating that the Bidder refuses to execute the Contract. The filing of such notice has the same force and effect as the failure of the Bidder to execute the Contract and furnish a performance bond and payment bond within the time specified in 103.04.

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Source: Standard Specifications for Road and Bridge Construction, 2019 (rev. 2022-12-21) Edition. Pages 52–53 of 651. View official source ↗

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102 Bidding Requirements and Conditions

104 Scope of Work

103Award and Execution of Contract

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