Bids on public construction contracts are typically completed in the final minutes before bid submittal. Price quotations from trade subcontractors are not received until then, leaving no time to negotiate a subcontract agreement. The bidder on the prime contract relies on the subcontractor quote and, if awarded the prime contract, expects the sub to perform at that price.
An electrical subcontractor in Washington State tried to back out of its price quotation after bid opening. The sub’s proposal had stated that written acceptance was required within seven days of receipt. The bidder had not accepted in writing but had incorporated the price into its successful bid. The subcontractor argued that any reliance by the bidder had not been reasonable in light of the lack of acceptance.
The second case in this issue involves qualification to provide expert opinion regarding an architect’s professional standard of care. The South Carolina Supreme Court ruled that under state law, a professional engineer’s testimony would be acceptable. The engineer had chosen, however, to offer only an opinion regarding construction contract administration, not an architect’s professional design responsibilities.
The third case addresses commercial general liability (CGL) insurance coverage for subcontracted work. Under the terms of a contractor’s CGL policy, there was coverage only if the subcontract was in writing and the subcontractor had proof of its own CGL coverage.
