R33-11-303. Payment Bonds

  (1) A payment bond is required for all construction contracts in excess of $50,000, in the amount of 100% of the contract price. If a contractor fails to deliver the required payment bond, the contractor's bid or offer shall be rejected, its bid security may be enforced, and award of the contract shall be made to the responsible bidder or offeror with the next lowest responsive bid or highest ranked offer.

  For executive branch procurement units:

  (a) Bid Bonds, Payment Bonds and Performance Bonds submitted by vendors to executive branch procurement units must be from sureties meeting the requirements of Rule R33-11-303(1)(b) and must be on the required bond forms;

  (b) Surety firm requirements. All surety firms must be authorized to do business in the State of Utah and be listed in the U.S. Department of the Treasury Circular 570, Companies Holding Certificates of Authority as Acceptable Securities on Federal Bonds and as Acceptable Reinsuring Companies for an amount not less than the amount of the bond to be issued.

  (2) The chief procurement officer, or head of a procurement unit with independent procurement authority, may waive any bonding requirement if it is determined in writing by the chief procurement officer or head of a procurement unit with independent procurement authority that:

  (a) bonds cannot reasonably be obtained for the work involved;

  (b) the cost of the bond exceeds the risk to the procurement unit; or

  (c) bonds are not necessary to protect the interests of the procurement unit.

  (3) If the conducting procurement unit fails to obtain a payment bond it shall be subject Utah Code Title 14, Chapter 1.