QUESTION

The client received only one bid in response to the tender that is over the approved budget for the project. As the tender is irrevocable and open for acceptance by the Owner for a period of 90 calendar days from the day following the Tender Closing Date and Time, and recognizing the fact that the client received only one bid in response to ITT, does the MMCD have a provision that allows or does not restrict the client to negotiate with the proponent?

COMMENT

Where there is only one compliant bid, the issue of violating conditions of Contract A with other bidders does not exist. The GCs allow the owner to reject all bids, which they probably should do if they don’t have the funds to proceed.

Then if the municipal bylaws permit negotiation without competition, the Owner can proceed to adjust the design and requirements to negotiate a price both can live with. Once a deal is reached, the documents are adjusted to suit and Contract B commences just as it would if there had been a normal process. I don’t think there is any violation of MMCD GCs or ITs if it is done this way. More likely the problem will be purchasing rules and restrictions.