AboutPeter M. Elliott Expertise First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only.
Experience Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit.
George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')
Question In Sept of 2003 the state of WV held a mandatory
prebid for Jetting landfill lines at 3 different landfills. 4 contractors attended but I was the only one who bid on scheduled bid opening date and time. My prices were comparable to 11 other similar projects that were awarded.
I maintain I provided a good faith bid and had no control whether other contractors bid or not.
They have requested safety plans, work plans, and not debt certification and workers comp which I have submitted and have received letters accepting these plans.
Now the State is not going to award because they don't have other bids , they do have letters from other contractors stating no bid.
I feel my bid is now public knowledge which will put me at a disavantage if it is rebid.
What should I do or should I just assume that the state does not have to follow the ettics that they require from others.
Answer Hi James,
It's rough bidding for contracts, isn't it. I have been both a bidder and an independant evaluator of bids. If you check the bidding documents, you will probably find a clause stating that the benficiary does not have to accept the lowest or any bid, and that all costs are to the charge of the bidder. Thus the beneficiary will have complied with his requirements.
Often, public clients are unable to accept a a bid if there are less than three compliant tenders, due to their internal rules for transparency.
If your bid is comparable to 11 other contracts, then it is unlikely that you are at a disadvantage. The beneficiary should keep the details of your bid confidential. The total price will not reveal much information to another bidder, as he does not know your mark up or your rates for plant labour and materials and you may have a better, more efficient working method than others.
Why did the other bidders decline? Too much work, or unfavourable conditions? It is often the case that a lot of bids are offered at the same time and contractors only bid the 'attractive' ones.
I would bite the bullet and make sure that next time there were four compliant bids, all more expensive than yours.
