Legal Question in Business Law in Colorado

Public Works Construction Contract Award

I was the low bidder on a new Firestation/Headquarters facility on Dec.11,1997. My bid was $1.5 million (roughly) The owner is Southwest Adams County Fire District and there was no 'pre-qualification' done for the prime bidders. They awarded the job to the third lowest bidder. My company has been in business one year in Colorado(13 years in California). They had concerns about my lack of 'local experience'. I am not sure whether this agency is public, quasi-public, or private but I would like to know what legal recourse I may have had to force the award of the contract. I did everything that was required by the documents including submitting a bid guarranty in the amount of 5% of my bid. If I'd failed to perform,in the event of a notice of award, within 10 days, by providing required performance&payment bonds and insurance certificates and signing the contract, they get to keep the the 5% as damages! Through their failure to perform I have been injured! They should have taken the time to pre- qualify the general contractors so we wouldn't be wasting our time and our reputations. I was ready, willing, and able to perform my part of the contract, but was rejected without due cause other than their 'gut feeling' about my new business. What can I do now, or in the future about this situation. Would I win in small claims to be compensated for my time?


Asked on 1/28/98, 2:37 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Public contracting

If you act fast, you may be able to file a protest of the award of the contract to the lower bidder with a state or county agency orwith the court. You may well have missed thedeadline, however -- these things move fast.Consult IMMEDIATELY with a governmentcontract lawyer familiar with the procedures in the relevant jurisdiction. If the contracthas not been signed, you may be able to enjoinit in court if the relevant state follows thefederal "Scanwell" doctrine.

As to a damages claim, these things vary fromstate to state, but in the federal system, onwhich many state systems are modeled, a disappointed bidder can recover as damages only his bid costs (i.e., preparation costs, bid bond, and the like), and only if you canshow that the procurement was conducted inbad faith.

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Answered on 1/29/98, 9:21 pm


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