Ron Engineering Case Summary
MJB
Introduction:
Bid for tender was requested by Defense Construction to construct a water pump, and distribution system. Important specifications for tender were a lump sum price, and would submitted a unit price for the construction of the distribution system. Four bids were collected. The contract was awarded to the lowest bid, Sorochan Enterprises Ltd.
Issues:
Does the statement of privilege allow the owner to choose a bid other than the lowest even if it breaches the terms of the tender? Facts:
One of the tender documents was that the lowest bid or tender shall not necessarily be accepted.
There were multiple types of materials that could be used for the sub grade for installing the pipe, and the owner wanted to see only a single …show more content…
Defense Construction declared that it was just a clarification and accepted the bid.
Analysis
The appellant used the Ron Engineering, Supra case to conclude that there was a contracted formed between the owner and each of the tenderers. The contract was Contract A. Since there was a formal contract introduced, the breach by Sorochan Enterprises Ltd. for introducing a stipulation for their bid, in the form of an additional charge, and because Defense Construction accepted this non-compliant bid, the Contract A between the other tenderers was broken.
The appellant argues that because there was a formal invitation to submit a tender for a project, the rules and regulations set forth by Canadian Construction Documents Committee Guide to Calling Bids and Awarding Contracts are applied for this scenario. In order for this to have merit, a statement from M.J.B Enterprises, supra. stating,
“We certify that Tenders for trades named under (a) and (b) below were received through the Alberta Bid Depository Ltd., ... in accordance with the Standard Rules of Practice for Bid Depositories (Federal Government Projects) as required by this
Introduction:
Bid for tender was requested by Defense Construction to construct a water pump, and distribution system. Important specifications for tender were a lump sum price, and would submitted a unit price for the construction of the distribution system. Four bids were collected. The contract was awarded to the lowest bid, Sorochan Enterprises Ltd.
Issues:
Does the statement of privilege allow the owner to choose a bid other than the lowest even if it breaches the terms of the tender? Facts:
One of the tender documents was that the lowest bid or tender shall not necessarily be accepted.
There were multiple types of materials that could be used for the sub grade for installing the pipe, and the owner wanted to see only a single …show more content…
Defense Construction declared that it was just a clarification and accepted the bid.
Analysis
The appellant used the Ron Engineering, Supra case to conclude that there was a contracted formed between the owner and each of the tenderers. The contract was Contract A. Since there was a formal contract introduced, the breach by Sorochan Enterprises Ltd. for introducing a stipulation for their bid, in the form of an additional charge, and because Defense Construction accepted this non-compliant bid, the Contract A between the other tenderers was broken.
The appellant argues that because there was a formal invitation to submit a tender for a project, the rules and regulations set forth by Canadian Construction Documents Committee Guide to Calling Bids and Awarding Contracts are applied for this scenario. In order for this to have merit, a statement from M.J.B Enterprises, supra. stating,
“We certify that Tenders for trades named under (a) and (b) below were received through the Alberta Bid Depository Ltd., ... in accordance with the Standard Rules of Practice for Bid Depositories (Federal Government Projects) as required by this