Bids may be accepted by awarding agencies up to the time set forth in the bid advertisement. Bids submitted late, generally, are not accepted or even considered, even if they are only late my mere minutes. In Wiltom Coach Co., v. Central High School Dist. No. 3 (1962), a notice to bidders for a bus transportation contract was issued and stipulated that bids would be due no later than 11:30 a.m. on a specific date. Several minutes after the closing of bid acceptance, petitioner’s...

The General Municipal Law and competitive-bidding statutes set forth procedures for advertising bids on public-owned construction projects. New York General Municipal Law § 103, for example, requires advertisements for public contracts to be published in newspapers allocated to advertise the public bids. The General Municipal Law also requires that the advertisement must state when and where the bids received for the project will be publicly opened and read. Furthermore, advertisements are...

Even if a bidder submits the lowest bid and is responsible, the bidder may still not be awarded the contract if its bid is not responsive, or does not comply with the bid instructions. Strict compliance with bid instructions is crucial when bidding on a publicly owned project, or on any construction project. It is often wise for a bidder to not only bid on the primary contract, but on any and all alternate contracts as well, as public project owners are not automatically required to prioritize...

Generally, the surety will not become liable on a bid bond unless or until the contractor has the legal obligation to enter into the specified contract and subsequently fails to meet those obligations and requirements under the contract. In Jobco, Inc. v. Nassau County (1987), a contractor brought an action for rescission or reformation of a contract with Nassau County. In August 1985, Nassau County invited bids for the general construction of the proposed Mitchell Field Transit Facility. The...

In a typical surety relationship there are four parties that arise when a bond is executed: the principal, indemnitor, obligee, and surety. The principal is the party that obtains the bond, and the bond will secure the principal’s performance of specific duties on a project. Typically a bond will be obtained by a contractor, and the bond will secure the contractor’s obligation to enter into a contract based on the contractor’s bid. Often the principal will be the surety’s indemnitor and...