Question on Bidding - Owner responsibilities

Building Section Vignette and Multiple Choice

Question on Bidding - Owner responsibilities

Postby Carrie_Ro » Sat Apr 21, 2018 9:22 am

In the A 701 there is a point which says "the owner shall at the request of the bidder to whom award of a contract is under consideration and no later than seven days prior to the expiration of the time for withdrawal of bids, furnish to the bidder reasonable evidence that financial arrangements have been made...". And "unless such evidence is furnished the bidder will not be required to execute the Agreement"
What I don't understand in this line is the part referring to "the expiration of the time for withdrawal of bids" because I thought that bids could not be withdrawn once the deadline for the bids has passed. Is this just saying that if a bidder asks for this and the owner refuses to provide it then, if awarded the contract the bidder does not have to accept the award, with no consequence?
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Re: Question on Bidding - Owner responsibilities

Postby ccolley12 » Thu Apr 26, 2018 2:29 pm

All it is saying is the owner needs to demonstrate, only to the contractor they are entering into this agreement with, they have the money to build the project. By soliciting bids, they are representing they have the money to build the project, but when it comes time to execute the contract, they need to offer proof.

To answer your second questions, most bids can be withdrawn, in some cases the bid bond will be retained as a liquidated damage if the low bid is withdrawn... although in my experience that rarely occurs. Keep reading A701, 4.2 and 4.4 for more information.
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