What is the maximum amount for a bid guarantee?

The maximum amount for a bid guarantee is set at $20,000. This amount serves as a financial assurance to the public entity that the bidder is serious about their offer and will enter into a contract if selected. A bid guarantee protects the interests of the municipality and discourages frivolous bids or those from bidders who do not intend to fulfill their obligations. This amount is structured to provide a reasonable balance between ensuring sufficient commitment from bidders while not posing an undue burden on them. The prevalence of $20,000 aligns with established guidelines and helps maintain the integrity of the bidding process in public procurement.