Bill > SB29

This bill modifies existing Montana state law regarding bid security for building and construction projects by explicitly allowing electronic bid bonds. Currently, contractors bidding on state construction projects must provide bid security (such as cash, cashier's check, or a traditional paper bond) equal to 10% of their bid amount. The bill now permits state and governmental entities to accept electronic bid bonds that are signed electronically or otherwise verified by both the bidder and the surety company. This change modernizes the bidding process by enabling digital submission of bid bonds, which can potentially streamline and expedite the procurement process for state construction projects. The bill maintains existing provisions that allow bid security requirements to be waived for smaller projects costing less than $150,000 and continues to prohibit governmental entities from requiring bid bonds from specific surety companies or insurance producers. The modification aims to provide more flexibility and convenience in the state's construction project bidding process while maintaining the fundamental security requirements.

Government Affairs

https://bills.legmt.gov/#/laws/bill/20251/LC0269