The city was correct in ruling out a cheaper bid to construct the Aberdeen fire hall when the company failed to meet its requirements, a B.C. Supreme Court justice has ruled.
True Construction Ltd. sued the City of Kamloops after it declined to accept its $3.4-million bid in 2010.
Instead, citing irregularities in the company’s bid, the city went with a bid from Tri-City Contracting (B.C.) Ltd. — about $150,000 higher.
After discussions with lawyers, city staff recommended to council that it go with Tri-City’s bid.
Council approved that recommendation.
B.C. Supreme Court Justice Hope Hyslop ruled faxed appendices to True’s bid did not meet the letter of the city bid, which called for a sealed document.
“True never completed its sealed bid; its fax completing that which should have been in its sealed bid was not an acceptable revision,” Hyslop said.
Hyslop said that fax completion of the bid allowed True an advantage in last-minute negotiations with subcontractors.
“By not completing the bid appendices, True avoided the risk of performing an unprofitable contract incapable of acceptance,” she ruled.
“Whether True intended this or not need not be proved.
“Rather, this is the effect of not completing the bid documents and then attempting to complete the bid documents by fax.”
Hyslop said the city must ensure bids “are made from the position of a fair playing field.”
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