The muddy waters of tendering law
- Condominium Group
- Dec 30, 2007
- 1 min read
The muddy waters of tendering law
December 31, 2007
As the rules that apply to tender calls and award of the work continue to evolve, new obligations and rights are created for owners and contractors who participate in a bid process. But “muddy” situations may arise, requiring that architects, owners and their legal advisors, maintain an awareness of the evolving laws, and pay careful attention in the preparation of tender documents as well as the valuation of the bids submitted.
Having issued a call for bids, an owner will review the tenders received and select the bid that is most attractive, generally the one that offers the lowest cost or the greatest value to the owner. The process and evaluation method that is most commonly used now is a direct result of the landmark decision of the Supreme Court of Canada (SCC) in The Queen (Ont.) v. Ron Engineering, [1981] 1 S.C.R. 111 (“Ron Engineering”). At first glance, the legal process seems straightforward enough, but the fallout from the decision has led to a convoluted legal regime that is with us to this day.
This is an excerpt from an article that appeared on Prodemnity.com.
