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No Reasonable Reliance On Suppler Price Quotation Bids; Suppliers

Friday, December 03, 2004 03:20 pm

No Reasonable Reliance On Suppler Price Quotation Bids; Suppliers

A Massachusetts court has ruled that a contractor did not reasonably rely on a supplier's price quotation when preparing its bid. The price was so low that the contractor should have suspected an error.

I & R Mechanical, Inc. was preparing a sub-bid for the heating, ventilation and air conditioning work on a public school project in Dartmouth. Hazelton Manufacturing Co., an authorized dealer for boilers manufactured by the H. B. Smith Co., sent I & R a facsimile quoting a price for three boilers needed for the project.

Hazelton normally calculated prices by taki [...]

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