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Owner's Bid Acceptance Was Irrevocable Bids

Sunday, March 02, 2003 12:46 pm


The Iowa Supreme Court has ruled that a public project owner's unconditional acceptance of a bid was irrevocable and created a binding agreement prior to execution of a written contract.

Dubuque County issued an invitation for bids for a highway resurfacing project. The solicitation said, "Failure to execute a contract and file an acceptable bond and certificate of insurance within 15 days of the date of the approval for awarding of the contract, as herein provided, will be just and sufficient cause for the denial of the award and forfeiture of the proposal guarantee."

Horsfield Construction, Inc. (HCI) submitted the low bid. The County Board of Supervisors sent H [...]

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