Bond Required Rather Than Certified Check
Kegler Brown Construction Newsletter May 1, 1994
In the case of C.S. Burge v. Fulton County (1993), 87 Ohio App. 3d 610, the low bidder on this demolition work for the county attempted to provide a certified check rather than a performance bond as required by the applicable statute, Ohio Revised Code §153.54. The Court ruled that the county had no duty to accept a certified check rather than a performance and payment bond and the low bid was properly thrown out on that basis. Therefore, bidders on public work in Ohio are cautioned to provide bonds at the time the contract is awarded, rather than certified checks. Bidders still retain the option to post a certified check, cashier's check or letter of credit for 10% of the bid amount as its bid guaranty, but these options do not extend to the payment and performance bond which must be provided after award.