(a)  Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the state to exceed fifty thousand dollars ($50,000). Bidder’s security shall be a bond provided by a surety company authorized to do business in this state, or the equivalent in cash, in a form satisfactory to the state. Nothing herein prevents the requirement of bonds on construction contracts under fifty thousand dollars ($50,000) when the circumstances warrant.

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(b)  Bidder’s security shall be in an amount equal to at least five percent (5%) of the amount of the bid.

(c)  When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected; provided, however, that the chief purchasing officer may set forth by regulations exceptions to this requirement in the event of substantial compliance.

(d)  After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids; provided, that, if a bidder is permitted to withdraw his or her bid before award because of a mistake in the bid as allowed by law or regulation, no action shall be had against the bidder or the bidder’s surety.