How County Construction Contracts Are Awarded and Bonded

All improvements made under the provisions of this Chapter shall be constructed under contract let to the lowest responsible and reliable bidder therefor, after public advertisement by the Council in a newspaper of general circulation published in the County three (3) times in one (1) week.The Council may either let the work as an entire contract, or in its discretion, make one (1) or more contracts separately for the different kinds of work to be performed, or for the improvement of different highways or parts of highways, to be improved under one (1) proceeding.Pursuant to Section 103-28 and Section 103-30, Hawai'i Revised Statutes, all bids shall be accompanied by a deposit of legal tender or by a certificate of deposit or certified check, on a bank doing business within the State or a sufficient surety bond payable to and in favor of the County for or in the sum equal to five percent (5%) of the amount bid; provided, that when the bid exceeds fifty thousand dollars ($50,000.00), the aforesaid deposit, certificate, check, or bond shall be for two thousand five hundred dollars ($2,500.00) plus two percent (2%) of the amount in excess of fifty thousand dollars ($50,000.00), which shall be forfeited to the County unless the successful bidder signs the contract and furnishes an approved bond within the time specified by the Council.No contract shall be made without a bond to the County, for the faithful performance of such contract, in an amount not less than fifty percent (50%) of the contract price, with at least two (2) sufficient sureties, each of whom shall be worth not less than the full amount of the bond over and above all property exempt from execution, and who shall, upon the written demand of the Councilmembers or of any owner of property subject to assessment, be required to justify thereon on an examination under oath before the Council; provided that instead of personal sureties, a duly qualified surety company may be substituted as provided by law. If upon such examination any surety is held insufficient, a new bond with sufficient sureties shall be filed by the successful bidder within the time specified and allowed by the Council, or the contract to him or her and the deposit shall be forfeited.Upon the contract being signed and a sufficient bond furnished as aforesaid, the deposit made with the bid shall be returned to the contractor.Any other method of letting contracts shall be illegal and void.The Council may, any other provision of the law to the contrary notwithstanding, let the contract without having the total amount of the contract price available, and if the completion of the contract will extend beyond the fiscal year in which the same is executed it may be let without the Council appropriating the total amount the County is obliged to pay towards the contract price. In the latter event, however, the County must have available and appropriated at the time of letting the contract, if the same is to be completed during the next succeeding fiscal year, at least fifty percent (50%) or if the same by its terms is not to be completed until beyond the next succeeding fiscal year at least thirty-three and one-third percent (33-1/3%) of the amount the County is obliged to pay toward the contract price and the balance shall in the first event be a first charge on the revenues of the County for the next succeeding fiscal year, and in the latter event to be a first charge on the revenues of each of the next two (2) succeeding fiscal years in the amount that the same will be required during such fiscal years, but in an amount of not less than fifty percent (50%) of the balance at the beginning of the first succeeding fiscal year and the remainder at the beginning of the second succeeding fiscal year. Pursuant to the Charter, the contract shall not be legal unless, before it is let, the Council by ordinance provides for the automatic appropriation at the beginning of the next succeeding fiscal years of the amounts herein made a first charge on the revenues of the County for such fiscal year and the Director of Finance of the County shall make the appropriations in the books as by the ordinance provided.The lowest responsible bidder may be awarded a conditional contract subject to public hearings, equalization hearings, and the assessment ordinance being adopted.Notwithstanding any other provision to the contrary, the Council may request the Mayor to direct the County Engineer and Finance Department to let the contract pursuant to the procedures specified in Section 24-3.6.