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BY LAURA SZYMANOSKI, CPPB, AND BILL MUNCH, CPPO, CPPB

Here’s What You Need to Know About

Procurement Bond Requirements

Laura Szymanoski Bill Munch

We seem to be getting many questions about bonding lately, and the district to exceed the amount established by R7-2-1002(A) which is
Number One question we receive is, “When do we need bonds?” For currently $100,000.
construction, you must use bonds for projects over $100,000. You may Clearly a bid bond is required for competitive sealed bidding, also
use bonds at your discretion for projects under $100,000. known as “hard bid.”
What type of bonding is necessary? First, you will need a bid bond If you use an RFP process in the second step of your design-build
also known as “bid security.” or job order contracting construction procurement, you must require a

R7-2-1102. Bid Security bid bond. You will note that no bid security is required for construction
manager at risk, because no bid price is asked for from the o erors.
A. Bid security shall be required for all competitive sealed bidding In addition to bid security, all construction contracts require
for construction contracts, and for all competitive sealed proposals performance and payment bonds. Please refer to Arizona school district
for design-build construction services or job-order-contracting procurement rule R7-2-1103. e rule requires performance and
construction services procured pursuant to R7-2- 1111, if the price, payment bonds if the value of a construction or construction services
excluding the cost of any nance services, maintenance services, award exceeds the magic threshold of $100,000.
operations services, design services, preconstruction services, or other
related services included in the contract, is estimated by the school CONTINUED ON PAGE 35

As a professional association, AASBO develops and presents education workshops to ensure the highest
standards of school business and organization management practices, ethics, and professional growth. AASBO
offers a varied menu of programs with everything needed to become skilled, effective, and knowledgeable in
the administration and operation of schools, public or private.

One-day training workshops
Examples of workshops offered by AASBO include:

Accounts Payable, Audit Compliance, Auxiliary & Student Activity Funds, Budget & Finance Potpourri, Capital
Financing, Employee Benefits, Energy Management, Grant Accounting/Reporting, Finance Data Analysis,
Fixed Assets, Food Service, Fund Accounting, GASB 34, Information Systems, Legislation, Maintenance

& Operations, Office Technology, Payroll, Personnel, Purchasing for Users, Risk Management, Student
Attendance, Transportation, Financial Coding & Reporting, School Business Management and Students FIRST.

Four Day Education Classes

Examples of education classes offered by AASBO include:
Budget & Finance, Information Systems, Purchasing, School Business Management, Accounting, Risk

Management/School Law, Food Services, Maintenance & Operations, Transportation, Personnel, Advanced
Budget & Finance, Advanced Purchasing and Advanced Maintenance/Transportation.

34 THE EDGE SUMMER 2018

THE EDGE |