Legal Question in Construction Law in Minnesota

I put a bid in on a construction job--I was the only bidder, and the owner said that my bid would not be opened because there was no competition (yet there was nothing about this in the documents). So, it job went out for re-tender. This time, instead of putting the tender in the paper (which was done the 1st time), they personally called companies with an invitation to bid on the job. I am not pleased that in the 1st round, they never informed me that competition was needed, and that in the 2nd round, they personally called contractors (and did not list the job in a local paper). This job does use taxpayers dollars. Do I have a leg to stand on?


Asked on 3/22/10, 10:00 am

1 Answer from Attorneys

Vincent W. King Vincent W. King, PA

Generally, private owners have the absolute right to reject any or all bids, and accept bids that are not the lowest bid. You indicate taxpayer $ are involved...If so, the project may or may not be subject to public bidding requirements. I don't know enough about the facts to be sure. Even a public owner, though, can reject all bids and rebid the job if there is insufficient competition. So that part was probably OK. As for failing to publicly advertise bids the second time around, again, we would need to know more facts to determine whether that was kosher. I do know that owners can prequalify bidders, and restrict the bid list that way. Bottom line, from the facts presented I can't be sure whether the owner is within its rights. Bid protests are pretty expensive and have a fairly low success rate. But here's a link to a couple of articles I wrote on the subject: http://www.nvo.com/vklaw/nss-folder/constructionbidding/ They are a little old, but they do provide a decent overview of bidding law. Standard disclaimer: The comments above are based on limited facts and should not be considered legal advice. We do not have an attorney-client relationship. That said, good luck to you and let me know if I can be of further assistance.

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Answered on 3/27/10, 11:59 am


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