Legal Question in Business Law in New York

canceled bid after work done on contract

A small business enterprise having won a state bid begins to provide services under the bid. A contract is drawn up to spell out the terms of engagement and a disagreement about contract clauses prior to signing ensues. Contract is revised with still an outstanding issue in dispute. Contractor refuses to sign until issue is heard. Bid is then canceled to send the work back for bid.

Is this legal? Does the awarded bid not stand? Does the contractor have a legal leg to stand on?

After contract issues continued to be negotiated and settled between the contractor and the recipient of the work, Purchase Dept cancels bid unwilling to meet with contractor. Do they have the right to do this after this contract has already been awarded to the Contractor and work already done on the award prior to the contract signing?


Asked on 5/15/06, 6:02 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: canceled bid after work done on contract

Is what they did legal? It depends on the terms of the contract, but very often government contracts are drawn to allow the contracting agency to pull out.

If you began work on the contract and have suffered a loss because of it, you may be entitled to be paid for the work completed such that you are made whole again (i.e., put back in the same financial position as you would have been had you not begun work on the contract); once again, it depends on many factors including the terms of your contract.

If you wish to discuss your matter further, please contact my office.

Best wishes,

Nancy Delain

THE INFORMATION GIVEN HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR ADVICE SPECIFIC TO YOUR SITUATION, CONTACT YOUR ATTORNEY.

Read more
Answered on 5/15/06, 8:40 pm


Related Questions & Answers

More Business Law questions and answers in New York