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Subcontractor Errs By Fussing Over Paperwork When Its Bid Was Binding

Tuesday, March 04, 2008 02:31 pm

Subcontractor Errs By Fussing Over Paperwork When Its Bid Was Binding

A federal court granted a prime contractor's motion for partial summary judgment when a subcontractor, unhappy with the form of the subcontract it was asked to sign, failed to honor its bid -- or to come up with a convincing excuse for having done so.

In late 2006, 3D Enterprises Contracting Corporation (3D) solicited a quote from National Electric Company (NEC) for electrical subcontract work on a wastewater treatment facility project 3D planned to bid on. In discussions, NEC requested an American Institute of Architects (AIA) standard subcontract form, and 3D indicated that it planned to use its own subcontract form for the project. NEC then submitted a bid for the electrical work, and 3D used NEC's bid in its prime bid for the treatment plant project, which it won.

In a letter sent in early 2007, NEC told 3D that it would not enter into a subcontract for the project because of differences in the scop [...]

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