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No Termination Recovery When Contract Void Bids; Termination-convenience

Monday, April 03, 2006 06:08 pm

No Termination Recovery When Contract Void Bids; Termination-convenience

A Massachusetts court has ruled that when a municipality awarded a contract in violation of state procurement statutes, the contract was void and the contractor could not recover under the termination for convenience clause.

The Town of Lunenburg issued an invitation for bids for improvements to the town sewer system. Although the solicitation was published in the central state registry, it was not advertised in a local newspaper of general circulation, as required by state law.

A number of contractors submitted bids, apparently unaware that the Town had not fulfilled the advertising requiremen [...]

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