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Construction Law Authority / Procurement  / Review All of the Terms When Preparing Your Bid

Review All of the Terms When Preparing Your Bid

When responding to an Invitation to Bid ("IFB") or other public solicitation, it is important to review terms above and beyond the scope of the work that may impact price. For example, the solicitation may include a contract form or other contract terms that should be carefully reviewed prior to bid submittal.

Many times, an IFB will provide the form of contract that the successful bidder will be required to sign. The contract form should not be considered "boiler plate" and may have terms that directly impact the cost of the work and profitability. We have seen instances where bidders have submitted the low bid, and are awarded the work without full appreciation of some of these contractual terms. Some examples of terms to consider when preparing a bid include:

  • The type of insurance coverage and coverage limits;
  • Warranty provisions;
  • Time for performance and "liquidated damages" clauses; and
  • Termination clauses.

Generally, Florida law does not allow a bidder to raise its price to account for mistakes made in the process of formulating the bid. So it is important to factor the these terms into the price bid, and in addition to the cost of the work itself.

William Cea

As a Board Certified Construction Attorney, Mr. Cea has handled multi-million dollar construction disputes, including defect cases on behalf of community associations, individual property owners, contractors, design professionals and developers.

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