Bid Shopping in Construction Part 2
The bidding process is a critical part of the construction industry, but the process does come with its own set of nuances. Things can get complicated when a subcontractor reneges on their bid. In this section, our Jacksonville construction attorneys discuss what happens when a subcontractor does not honor their bid and how general contractors go about enforcing a bid.
Reneging on Bid Pricing
Although the submitted bid is not a contract, it is a form of commitment from the subcontractor to perform under the scope of work in which it submitted pricing for. Incorporating the subcontractor’s bid into the proposal signifies the general contractor’s reliance on the subcontractor’s bid. In the event that the general contractor is awarded the contract and a subcontractor refuses to honor their original bid price, this could place the general contractor under financial strain (for example: having to find another bidder at a higher price).
Enforcing a Bid
In the construction industry, a promise to perform certain work at a certain price opens the door to breach of contract, breach of warranty, and negligence claims. If you are dealing with a subcontractor that has violated their contract, you will need the services of a Jacksonville construction attorney. A general contractor can file a promissory estoppel claim against a subcontractor if they maintain that a promise was made to perform work and the failure to perform that work resulted in damages. The general contractor must prove that the subcontractor made a promise and their reliance upon that promise was reasonable and foreseeable.
If you would like to speak with a Jacksonville construction lawyer, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.