Legal Question in Construction Law in California

I was approached by contractor bidding a public works project to provide him my sub-contractor bid as I am the specified product. After all was said and done, it was revealed to me that he was only asking for my quote so that he could provide it to my competitor prior to the bid so that my competitor could under bid me and take that portion of the project. The contractor in question was later found to be a sales representative for my competitor. For me, is this just a case of lesson learned? or is there a process that a formal complaint can be filed against them based on what I feel are unethical business practices? Also can this be used as a formal bid protest as a form of collusion, or other bid ethics issue?


Asked on 2/18/16, 11:03 am

1 Answer from Attorneys

Well it certainly is a case of lesson learned to make sure who you are dealing with and giving information to.

Unfortunately, bid shopping and bid peddling is not illegal in and of itself. Once a public works contract is awarded, it is illegal to substitute a different cheaper subcontractor without approval of the public agency involved and only for specific good cause. However it does seem like you may well have a fraud case against your competitor and his employee. The main issue there would be whether you would have had the opportunity to get a subcontract with the contractor who got the job. If you didn't have the opportunity to get the job from the general contractor who got the work, you wouldn't have any damages to claim. If you can show evidence that you would have been able to get the work but for your competitor's misconduct, you probably have a good fraud case, and possibly a Business and Professions Code section 17200 unfair competition case.

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Answered on 2/18/16, 11:48 am


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