Tendering Process

Question 1

what is the tendering process?

Answer 1

• A company (generally a construction company) calls for tender, and interested parties submit a bid for a particular job.
• The call for tenders usually has extensive terms and conditions.
• Once the bid process has closed, the tenders are considered, and one is selected according to the criteria set out in the original call for tenders.
• The contract is awarded to the successful bidder.
• For this process to work, the parties submitting the tender must be unable to amend to revoke their tenders during the consideration period & they must be willing to accept the job if awarded

Question 2

Contract A in tendering

Answer 2

• A unilateral contract
• The offer is sent out when the owners call for submissions and consideration and acceptance comes from submitting a bid.
• There is an implied condition that only compliant bids are accepted (Double N Earthmovers Ltd.).

Question 3

Contract B in tendering

Answer 3

• A bilateral contract
• The offer is to perform the work, and the acceptance
• The exchange here is the money for the job for the work to be provided.

Question 4

MJB Enterprises Ltd. v. Defence Construction

Answer 4

• Facts: The defendant invited tenders and awarded the contract to a non-compliant bidder, relying on a “privilege” clause allowing them to accept “any tender”.
• Rule: The tendering process consists of two contracts. A privilege clause does not permit the acceptance of a non-compliant tender.

Question 5

Double N Earthmovers Ltd. v. Edmonton

Answer 5

• Facts: A dispute arose over what constituted a compliant bid in the Contract A stage of a tendering process.
• Rule: There is an implied condition th