The Federal Acquisition Regulation includes specific requirements for bid bonds on federal construction projects. It even provides a standard form of bid bond that meets those requirements. Use of the form is not mandatory, but compliance with the bonding requirements is. So why would anyone use a bond form other than the government’s standard form?
On a recent federal procurement in Pennsylvania, every bidder but one used the standard government form. The low bidder used the AIA bid bond Form A310. But does the AIA form meet the FAR requirements? Was the low bid a responsive bid?
The other case in this issue involved a prime contractor’s liability for a subcontractor’s OSHA safety violations. The prime, as the controlling employer at the jobsite, had a duty to exercise “reasonable diligence” to prevent or abate safety violations at the site. But what does that mean? What is the extent of that duty?
