Skip to content

Listen to Our Newest Podcast Episodes!

Podcasts

Homebuilders Association VancouverHomebuilders Association Vancouver
Homebuilders Association Vancouver
  • Find a Professional
  • About
    • Who We Are
      • Meet the Team
      • Board of Directors
      • Committees and Councils
    • What We Do
      • Charities Supported
      • News
      • Newsletters
      • Code of Ethics
    • Contact
      • General
      • Media
      • Issues
  • Homeowners
    • Podcast: Measure Twice Cut Once
    • Homebuying Master Class
    • High Performance Homes
    • Home Design & Reno Show
    • Design Build Blog
      • Kitchen Renovation Vancouver
      • Interior Designer Vancouver
    • Industry Resources
    • Coats for Kids
  • Advocacy
    • Bringing It Home
    • Purpose and Structure
    • Reports and Studies
    • CEO MMB Blog
    • BC Energy Step Code
    • Building Standards
    • GR Wins
    • GRU Newsletter
    • COVID-19
      • COVID-19 Resources
      • COVID-19 Policy for Events & Meetings
  • Education
    • eLearn
    • In-Class/Online Courses
    • Builder Licensing
    • Continuing Education
    • Builders’ Blog
    • Integrated Design Process
    • RenoMark
  • Membership
    • Benefits of Joining
    • Events
      • Upcoming Events
      • Legends of Housing
      • Buildex
      • HAVAN Awards Finalist Soiree
      • HAVAN Awards Gala
      • Members Expo
      • Fall Classic Golf Tournament
    • Highlights
      • Industry Awards
      • Honorary Members
      • HAVAN Heroes
      • Spotlights
    • Marketing
      • Affinity Program
      • Sponsorships
      • Advertise With Us
    • Photo Gallery
    • FAQ
    • Members Only Page
    • Member Login
  • Awards
  • Careers
    • Find a Career
    • Lets Build a Career
 
Login

Join Us

  • Find a Professional
  • About
    • Who We Are
      • Meet the Team
      • Board of Directors
      • Committees and Councils
    • What We Do
      • Charities Supported
      • News
      • Newsletters
      • Code of Ethics
    • Contact
      • General
      • Media
      • Issues
  • Homeowners
    • Podcast: Measure Twice Cut Once
    • Homebuying Master Class
    • High Performance Homes
    • Home Design & Reno Show
    • Design Build Blog
      • Kitchen Renovation Vancouver
      • Interior Designer Vancouver
    • Industry Resources
    • Coats for Kids
  • Advocacy
    • Bringing It Home
    • Purpose and Structure
    • Reports and Studies
    • CEO MMB Blog
    • BC Energy Step Code
    • Building Standards
    • GR Wins
    • GRU Newsletter
    • COVID-19
      • COVID-19 Resources
      • COVID-19 Policy for Events & Meetings
  • Education
    • eLearn
    • In-Class/Online Courses
    • Builder Licensing
    • Continuing Education
    • Builders’ Blog
    • Integrated Design Process
    • RenoMark
  • Membership
    • Benefits of Joining
    • Events
      • Upcoming Events
      • Legends of Housing
      • Buildex
      • HAVAN Awards Finalist Soiree
      • HAVAN Awards Gala
      • Members Expo
      • Fall Classic Golf Tournament
    • Highlights
      • Industry Awards
      • Honorary Members
      • HAVAN Heroes
      • Spotlights
    • Marketing
      • Affinity Program
      • Sponsorships
      • Advertise With Us
    • Photo Gallery
    • FAQ
    • Members Only Page
    • Member Login
  • Awards
  • Careers
    • Find a Career
    • Lets Build a Career
  • Blog, New homes, Renovating, Renovations / Renovating
  • Legal Articles

Winning the Bid – The Importance of Following Proper Tendering Procedures

Winning the Bid – The Importance of Following Proper Tendering Procedures

British Columbia’s competitive construction industry sees its fair share of intense bidding wars between contractors. To avoid the risk of underbidding, contractors may be tempted to submit their bids at the last possible second to include the latest quotes and ensure cost projections are as complete as possible. However, contractors must remember that whatever advantage they may hope to gain by doing this can be completely lost if they do not ensure their bid conforms to the specific tender procedures. In the case of True Construction Ltd. v. Kamloops (City), the B.C. Court of Appeal upheld an owner’s decision to refuse a contractor’s non-compliant bid, even though it was the lowest submitted.

FACTS
In this case, the City of Kamloops (the “City”) issued an invitation to bid on the construction of a new fire hall (the “Project”). One of the tender requirements was for contractors to include a list of subcontractors to be used at the Project in an appendix to their bid. However, the contractor (the “Contractor”) submitting the lowest bid initially failed to include the appendix containing this information. Although the Contractor later faxed the required appendix to the City, the City refused to permit faxed revisions to its bid. Ultimately, the City determined that the bid was defective. The contract for the Project went to the next-highest bidder and the Contractor sued the City for damages.

THE DECISION
The Court of Appeal agreed with the City that the Bid was not tendered correctly. The list of subcontractors was found to be critical in determining the proper party to be awarded the contract for the Project.

The Court further held that the Contractor had taken advantage of the tendering process by faxing the appendix containing its list of subcontractors after its bid was originally submitted. This resulted in an unfair advantage to the Contractor, who was able to continue negotiating its subcontracts even after its bid was submitted. Because its bid was not legally capable of acceptance without the appendix, the Contractor was able to wait until the last possible moment to determine whether the Project would be profitable before finalizing its bid. If the price of its subcontracts turned out to be too high, the Contractor could simply withhold the appendix and refuse to finalize its bid. Those contractors who submitted a binding bid including their lists of subcontractors would not have the same option to walk away if the accepted price turned out to be too high. The court refused to allow the Contractor to gain an advantage by failing to follow the material terms of the City’s tender.

In its decision, the Court focused on the need to uphold the integrity of the tendering process. Whether the Contractor actually did secure an advantage was seen as immaterial. The real issue was whether the Contractor’s practice created a potential competitive advantage and undermined the integrity of the bidding process. Ultimately, the Court found that it did and the City’s decision to exclude the non-compliant bid was vindicated.

LESSON LEARNED
When submitting a bid in a tendering context, be sure to follow all the requirements contained in the invitation to tender. Owners often reserve their contractual right to disqualify improper bids, even if they are the lowest. Even though bending the requirements of the tender might appear to create a temporary advantage, it might actually prevent you from winning the bid in the long run.

This article was written by Jay N. Spiro, lawyer, and John Wiebe, articled student, who practice in construction law with the law firm of Kuhn LLP. This article is only intended as a guide and cannot cover every situation. It is important to get legal advice for specific situations. If you have any questions or comments about this case or other construction law matters, please contact us at 604-864-8877 (Abbotsford) or 604-684-8668 (Vancouver).

Post navigation

PreviousPrevious post:Gimme Shelter (Staying Behind the Corporate Veil)NextNext post:INVESTING IN RENOVATIONS PAYS OFF IN MORE THAN DOLLARS

Related Posts

Top Ten Small Kitchen Ideas and Design Tips
Award-winning Basement Renovations and Ideas
BRANDING YOUR CONSTRUCTION SITE
Homeowners embrace smart home technology to fight against climate change
WHITE – OUT!
ConEcon – Trusted Partners in Real Estate Development
Our Members Speak
  • HAVAN has been an incredible resource for our organization. From staying up to date on the latest news and technologies, to pertinent education opportunities, and facilitating participation for advocacy in our industry. HAVAN has all the right connections to service... Read more...

    Rick Mann, Director, Isle of Mann Property Group
  • HAVAN is my ‘most valued’ association for my business and for me! I meet and learn from amazing people dedicated to the homebuilding industry. It’s an exciting professional atmosphere where we work together on common issues. Read more...

    Lynn Harrison, Harrison Marketing Resources
  • The HAVAN provides strong leadership.  HAVAN leaders are often in the news and you find their consistent presence in the media.  Read more...

    Larry Clay, President
  • “Being able to network with countless professionals throughout the construction industry is invaluable.” Read more...

    Janice Pynn, CEO
  • “The bulk of my business comes from fellow HAVAN members, and every year, my membership pays for itself–usually by February”. Read more...

    Martin Knowles, Owner, photographer

Join the Homebuilders Association Vancouver

Become a Member
Consumer Links
  • Find a Builder
  • Find a Renovator
  • Find Products/Services
  • Events
  • About Us
  • Podcast
Member Links
  • Membership
  • Industry Education
  • Events
  • Members Only
  • Member Login
  • Newsletters
Contact Info

T: 778-565-4288
F: 778-565-4289

#1011 – 7445 132 Street,
Surrey, BC V3W 1J8
Canada

Contact Us

Proudly affiliated with

 

 

  • Facebook
  • Twitter
  • Pinterest
  • Houzz
  • Flickr
  • YouTube
  • LinkedIn
  • Instagram
  • Podcast
Social Footer Links

Copyright © 2022 Homebuilders Association Vancouver. All rights reserved.
Serving all 21 municipalities in Metro Vancouver: Vancouver, West Vancouver, Bowen Island, Lions Bay, North Vancouver (city and district), Richmond, Burnaby, New Westminster, Coquitlam, Port Moody, Port Coquitlam, Anmore, Belcarra, Surrey, Delta, White Rock, Tsawwassen First Nations, Langley (city and township), Maple Ridge, Pitt Meadows.

Website by Red Rocket Creative Strategies

Slider images credit: Project Mint Developments, Nick Bray Architecture, TQ Construction, Designs by Katerina & Silvie

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

Performance

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

SAVE & ACCEPT