The Law of Tendering
13 important questions on The Law of Tendering
What are Contract A & B?
- Contract B is the construction contract (the what: the project)
What makes up tendering contract rights and responsabilities?
What are the basic criteria of a tender?
- Period of irrevocability
- Binding form of Contract B
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What are included in the Tender Documents?
- Instruction to Bidders, referencing contract B
- Tender form
What did Ron Engineering Case change? What was the issue with the prior system?
- Owner owed no obligations to bidder unless contract awarded
- Issue: owner could bid shop and sub-contractors could withdraw
What is Contract A? What does it entail?
- The offer is the owner's call for bids
- Entered into with every compliant bid
- Acceptance is the bidder's submission of a bid
- Consideration is owners promise to evaluate bid for acceptance
Who is liable in breach of contract A? What would make a breach? What would make Contract A not be created?
withdrawing bids during period of irrevocability on part of the bidder
Not evaluating bid on part of the owner
A non-compliant bid would make Contract A not be created
What is Contract B? What does Contract B entail?
- If bid accepted Contract B becomes the basis for a construction contract
- Bidder performs work and owner will pay
What are privilege clauses?
- Can reject bid on basis of tender irregularity (not meeting terms), won't form a Contract A
What is Non-Compliance? What can this result in?
- e.g. Graham construction
- Not forming a Contract A
What happens if an owner breaches contract A? When a tenderer breaches contract A?
- Tenderer: Owner recovers costs of awarding contract to next highest bidder
What is Bid Shopping?
What are procurement best practices?
- Comply with contract A
- Maintain integrity of bidding system
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