State Court Grants Damages To Contractor for Subcontractor's Withdrawn Bid

摘要

IN THE construction industry, furnishing quotes and bid prices is considered by most to be a risky business. The reason is that general contractors are legally bound to honor the price contained in their proposals if a contract is awarded. At the subcontracting level, the same general principle applies. During bid preparation, contractors solicit multiple quotes for a particular scope of work in search of the lowest price. If any subcontractor withdraws its bid before submission of the general contractors bid, it is generally considered "no harm, no foul." In other words, no contract was formed obligating the subcontractor to its price because the general contractor had not yet "accepted" the subcontractors "offer." But what kind of legal exposure occurs when a subcontractor withdraws its bid after the general contractor relies on it to obtain an award?