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Contractor Found No Support In Industry Practices When Sub's Bid Quote Expressly Told The Contractor

Monday, June 04, 2007 12:21 pm

Contractor Found No Support In Industry Practices When Sub's Bid Quote Expressly Told The Contractor Not To Rely On It

In a case described as a "cautionary tale, " a federal appeals court ruled that when a contractor doesn't pay close attention to a subcontractor's bid and relies on the price quoted even though the bid clearly stipulated that the price was not a firm offer and the contractor should not rely on it, the contractor is stuck with its mistake.

General contractor Fletcher-Harlee Corporation solicited bids from subcontractors. The bid solicitation letter specified that subcontractors had to agree to be accountable for the prices and proposals they submitted.

Pote Concrete Contractors, Inc. submitted a written price quotation for providing concrete for the project. The response did not conform to Fletcher-Harlee's terms. Instead, it stipulated that its price quotation was for informational purposes only, did not constitute a "firm offer" and should not be relied on. Pote also stated that it did not agree to be held liable for any of the terms it submitted.

Pote's terms were the most fav [...]

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