Legal Question in Construction Law in California
bid withdraw
i am a subcontractor, today i bid to a
general contractor on a publics work
job, a school. my estimator made an
error, my price was way low. can i
withdraw my bid from the general
contractor?
3 Answers from Attorneys
Re: bid withdraw
This is a subject often studied in law school and there are several published cases. The bottom line seems to be that your chances are best if you report the mistake as soon as you discover it.
It is also helpful if the mistake was obvious, so the contractor should not have relied on it - for example, using 50c a gallon instead of $5 as the cost of Diesel fuel.
If the contractor has already submitted its bid in justifiable reliance on your offer, you may be able to withdraw but you could be sued for the contractor's damages when he has to replace you with the next lowest bidder.
Get on the phone right now and try to explain you way out of it.
Re: bid withdraw
You may withdraw your offer before the GC accepts or detrimentally relies on your offer, but this withdrawal must be communicated to the GC. Sending him a letter or leaving a message on his voicemail may not be sufficient. Of course, any conversation you have with the GC you will want to confirm in writing; this is where a lawyer may assist you.
Re: bid withdraw
You might want to let the general contractor know as soon as possible so he does not rely on your number.
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