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Contract Was Unit-priced Instead Of Fixed Unit Prices; Bids

Saturday, July 03, 2004 01:34 pm

Contract Was Unit-priced Instead Of Fixed Unit Prices; Bids

The South Dakota Supreme Court has ruled that a contract was priced on a per-unit basis, not a fixed price as contended by the project owner.

The City of Canistota issued an invitation for bids for water main and sanitary sewer improvements. The bid schedule consisted of 146 line items. Each line consisted of a description of the work item and an estimated quantity based upon units such as tons or linear feet. Bidders were instructed to enter a unit price and an extended total line item price. The low bid was to be determined by totaling the line item prices.

Prunty Construction, Inc. submitted the low bid of $925,587 and wa [...]

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