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General Specifications (00100-01500)

00515Contract Award And Execution

UT · 2026 Standard Specifications✓ Full text on BuildSpecRev. June 25, 2020Book pages 35–40 Save this section

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CONTRACT AWARD AND EXECUTION

PART 1 GENERAL

1.1SECTION INCLUDES

A.Conditions for awarding a contract.

1.2RELATED SECTIONS Not Used

1.3REFERENCES

A.Federal Uniform Guidance (FUG)
B.United States Department of Treasury Circular 570
C.Utah Procurement Code (UPC)
D.Utah Administrative Code (UAC)

1.4DEFINITIONS Not Used

1.5SUBMITTALS

A.Provide all submittals in this Section to the Director of Construction.
B.Declaration of clerical or mathematical error when applicable. Refer to

this Section, Article 1.6 paragraph D.

C.Contract Bonds. Refer to this Section, Article 1.10.
D.Executed contracts for Department execution. Refer to this Section,

Article 1.11, paragraph A.

E.Signed statement for Qualified Health Coverage and actuarial statement.

Refer to this Section, Article 1.11, paragraph B.

Contract Award and Execution

1.6PROPOSAL CONSIDERATION

A.The Department adheres to the requirements of the Utah Procurement

Code (UPC), and applicable rules codified in the Utah Administrative Code

(UAC)and the Federal Uniform Guidance (FUG) for soliciting, awarding

and executing contracts.

1.Part 6 of the UPC applies to soliciting, awarding and executing

"bids."

2.Part 7 of the UPC applies to soliciting, awarding and executing Bid

"Proposals."

B.The Department publicly opens responsive proposals from responsible

and prequalified vendors using the current version of the UDOT Bidding System (UBS). The UBS compares bids and proposals on the basis of the summation of the products of the quantities and the unit bid prices.

1.The Department makes the results of the comparisons available to

the public.

2.The unit bid prices govern if a discrepancy exists between unit bid

prices and extensions.

a.A signed hard copy takes precedence over a manually

delivered electronic version in the case of discrepancies or initialed changes to unit prices or DBE commitment in this case.

C.The Department reserves the right to reject any or all proposals, waive

technicalities, or cancel a solicitation and re-advertise for new proposals, pursuant to the requirements of state and federal procurement law.

D.The bidder can request withdrawal of a bid after bid opening by:
1.Submitting a notarized affidavit within 24 hours after bid opening

declaring a clerical or mathematical error in bid preparation.

a.Submitting accompanying declaration with original work

sheets used in bid preparation.

b.Describing specific errors in detail.
c.Verifying that error has a significant monetary effect in the

amount of 3 percent of the bid or greater.

E.Bidders may correct immaterial errors, and the Department may ask a

bidder to clarify information included in a bid or proposal as allowed by the UPC and applicable rules and regulations after bids or proposals are opened.

F.The Director for Construction makes the final determination of the

withdrawal request.

Contract Award and Execution

1.7CONTRACT AWARD

A.The Department will award the contract to the lowest responsive and

responsible bidder within 30 calendar days.

B.The Department may withhold award beyond the 30 calendar days with

the approval of the successful bidder.

C.The bidder may withdraw the proposal without liability if the award is not

made within 30 calendar days.

D.The Department notifies the successful bidder by email as indicated with

Contractor registration. The date of the award notice email serves as the Notice of Award date to the successful bidding contractor and will define that the bid has been accepted and the contract has been awarded.

1.8CANCELING THE AWARD

A.The Department may cancel the award of any contract before a contract is

executed pursuant to the requirements of the UPC, and the applicable sections of the UAC and the FUG without liability.

1.9RETURNING PROPOSAL GUARANTY

A.Proposal guaranties are released after the Department receives

satisfactory contract bonds, all required certificates of insurance, and the fully executed contract between the Contractor and the bonding company.

B.A Contractor is not released from its bidding or contractual obligation

because of an alleged error in the preparation of the proposal or issues with any part of the contractual process unless the Department releases the surety guaranty.

1.10CONTRACT BONDS

A.The Department furnishes the required bond forms.
B.Return fully executed bond forms to the Department as required by the

UPC.

1.Payment Bond secures the payment of the claims of laborers,

mechanics or material suppliers employed on the work under the contract.

2.Performance Bond guarantees the faithful performance of the

contract.

Contract Award and Execution

C.Each bond must be in an amount equal to 100% of the price specified in

the contract.

D.Underwriting Limitation is stated in the United States Department of

Treasury Circular 570: Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies.

1.Only companies listed in the Department of Treasury Circular 570

in effect the year the contract between the Department and the Contractor is executed are acceptable.

2.This list of companies is accessible through the U.S. Department of

Treasury, Bureau of the Fiscal Service’s website. A current link to the web page can be found at: http://www.udot.utah.gov/go/standardsreferences.

E.The Department may issue change orders that alter the terms of the

contracts, extend deadlines, and change the scope of work without securing the consent of the surety or sureties on the contract bonds.

F.The Department may terminate the contract and cancel all work under the

contract if a Contractor’s surety is unable to provide payment, unless the Department determines it is in the public interest to continue the work.

G.Contractor may furnish cash bonds in the form of two cashier’s checks,

each in the amount of Contractor’s bid amount as an alternative to the required payment and performance surety bonds.

1.The Department will hold the cash bonds in an interest bearing

account and use the proceeds as needed for correcting non-performance or non-payment by the Contractor.

2.The Department will return one half of the cash bond minus costs

levied against either of the bonds to the Contractor upon release by the Engineer after physical completion of the work.

3.The Department will release the remaining cash bond if no payment

or performance claims arise for 90 calendar days after release by the Engineer after physical completion of the work.

4.The Department will hold the cash bonds until existing

non-performance or non-payment issues are resolved.

a.The Contractor accrues no liability during this time.
5.The Department determines the need for withholding the cash

bond.

Contract Award and Execution

1.11EXECUTING AND APPROVING THE CONTRACT

A.Awarded Contractor must return fully executed contracts, contract bonds,

National Safety Rating Scores, and required certificates of insurance to the Department within 20 calendar days after the date of the notice of award.

1.The bidder can withdraw the proposal without penalty if the

Department does not execute the contract within 30 calendar days after receiving requisite signed contracts, bonds, and insurance certificates.

2.The contract is not considered effective or enforceable until fully

executed by all parties.

3.The date on the executed electronic contract serves as the Notice

to Proceed date to the awarded contractor.

B.Qualified Health Benefit Plan-The Department will not issue a Notice to

Proceed until the Contractor demonstrates to the Department that both the Contractor and its subcontractors have and will maintain an offer of qualified health insurance coverage for the Contractor's employees and the employees' dependents during the duration of the contract.

1.Contractors and subcontractors who fail to demonstrate to the

Department that they have and will maintain an offer of qualified health coverage for their employees and the employees' dependents during the duration of the contract are subject to penalties in accordance with Utah Administrative Rule, which may include termination of their contract.

a.For any subcontract valued at or above $1,000,000 provide

an actuarial statement of equivalency that they have and will maintain an offer of “qualified health benefit plan” to employees and dependents of employees as required by Utah Transportation Code 72-6-107.5.

2.Refer to http://www.udot.utah.gov/go/standardsreferences for

instructions on the process for Qualified Health Coverage.

3.Contractor must provide two statements to “demonstrate”

compliance with Section 72-6-107.5. Statements need to be signed originals and on company letterhead. Separate letters for each subsidiary, or DBA contracting with Department, are required.

a.Provide an original signed statement from the Contractor

stating that they will maintain an offer of Qualified Health Coverage as required by Utah Code 72-6-107.5 for the duration of any contract between Contractor and UDOT.

b.Provide a written statement of actuarial equivalency from:

1) An actuary selected by the Contractor or the Contractor’s insurer;

Contract Award and Execution

2) An underwriter who is responsible for developing the employer group’s premium rates; 3) or the contractor provides a health benefit plan described with Section 72-6-107.5, an actuary or underwriter selected by a third-party administrator.

1.12MATERIALS GUARANTY

A.Contractor may be required to furnish a written guaranty covering certain

items of work for varying periods of time from the date of acceptance of the contract.

1.The Department specifies in the contract the work to be

guaranteed, the form the Contractor will use to provide the guarantee, the time limit and other specific requirements of the guaranty.

2.Sign and deliver the materials guaranty to the Engineer before

contract completion.

3.The required performance bond may be reduced upon contract

completion to conform to the total amount of the contract bid prices for the items of work to be guaranteed. This amount continues in full force and effect for the duration of the guaranty period. Refer to this Section, article 1.10.

1.13FAILURE TO EXECUTE CONTRACT

A.The Department can cancel the notice of award and keep the proposal

guaranty if the successful bidder does not execute the contract and file acceptable bonds and insurance certificates that prove coverage within 20 calendar days after the date of the Notice of Award.

B.The Department may then award the contract to the next lowest

responsive and responsible bidder or may re-advertise the work.

PART 2 PRODUCTS Not Used

PART 3 EXECUTION Not Used

END OF SECTION

Contract Award and Execution

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Source: Utah Standard Specifications for Road and Bridge Construction, 2026 Edition. Pages 35–40 of 1,331. View official source ↗

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