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Volume 5 - Number 14 | April 2, 2007
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EDITOR'S NOTES
The amount of information available on a project will often make or break the success of that project in time, quality and cost. This week’s first two cases serve as prime examples. If an owner (in this case, a government agency) intentionally withholds vital information from the contractor about site conditions, the contractor’s bid is obviously less than accurate. Further, the contractor may face significant delays as it learns about the conditions through the course of the project. Who is at fault? The owner is. In this case, full disclosure is the best policy.
Likewise, if a contractor fails to provide contractual expectations to its subcontractor despite repeated requests from the sub, the sub may have a valid claim against the contractor when it abandons the job (especially if the contractor fails to fulfill its own contractual obligations to the sub).
The final case this week comes from the Comptroller General. If an agency’s solicitation for bids includes an amendment that requires special acknowledgement, bidders must include proper recognition, no matter how trivial the amendment may seem, to be considered responsive.
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AGENCY PAYS FOR WITHHOLDING INTERNAL SITE CONDITION MEMO
Withholding vital information about site conditions on a government project is tantamount to constructive fraud, says a Pennsylvania court. The contractor may seek redress for costs associated with information that would have materially affected the amount of its bid had all available information been shared.
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SUBCONTRACTOR WAS JUSTIFIED IN ABANDONING WORK
If a subcontractor makes all reasonable efforts to comply with the terms of a contract but is repeatedly deterred by the contractor, it may have a legitimate claim for abandoning the project.
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LOW BID REJECTED DUE TO FAILURE TO COMMIT TO COLOR SCHEME
Color schemes are more than niceties on federal projects, rules the Comptroller General in a bid protest. If the bid invitation requires bidders to acknowledge an amendment to aesthetic considerations, a bidder will be found non-responsive if the acknowledgement is missing.
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