Wednesday, February 27, 2008

Bid Protests: Timing

In a recent Maryland State Board of Contract Appeals (“Board”) case, the Board found that a contractor failed to file a timely bid protest. The Board ruled that the bid protest should have been made when the construction company knew or should have known the basis for its protest and not at the time the bid was awarded. A high burden is placed on any contractor submitting bids for State contracts, because a bid protest may need to be filed before the bid is awarded or repercussions felt by the contractor.

In this most recent case, the State Highway Administration (“SHA”) accepted invitations for bids for a Community Safety and Enhancement project (“Contract”). The bid of the lowest bidder was announced as “irregular” because of insufficient bid security; however, subsequent to the opening of the bids, the SHA found that the low bidder’s bid was valid and effective. The low bidder was then awarded the Contract. After being informed by SHA of the award of the Contract, a bid protest was brought by the second lowest bidder. The Board ultimately found that the bid protest should have been brought within seven days from the time the lowest bidder’s bid was deemed “irregular” and not within seven days after the bid was awarded. The Board, as it has done numerous times in the past, places a strict interpretation on the timing of a bid protests as it relates to a construction company’s basis for the protest. As such, if you intend to bid any public projects in Maryland, be vigilant in determining whether all proper procedures have been followed. As soon as there is a violation, even if it occurs prior to the bid being awarded, a bid protest may be your only option to protect your rights.

If you have any further questions on bid protests or construction law, please contact Michael W. Siri at siri@bowie-jensen.com.

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