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InsuranceLawyer, Attorney
Category: Business Law
Satisfied Customers: 1033
Experience:  27 years litigation experience, 14,000+ lawsuits, author of 2 books and 100s of articles
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if you bid on a contract and have to put up a 5%

Customer Question

if you bid on a contract and have to put up a 5% bid bond and the two lowest bidders submit a bid check from the same bank and you lose the contract by $10.00 per billing,would that cause a reason for concern.the yearly bid was just under $50,000.00
Submitted: 8 years ago.
Category: Business Law
Expert:  InsuranceLawyer replied 8 years ago.

It depends on what the rules and terms of the bid were. Some municipalities have a rule that if the losing bid is very close to the winning bid (by "x" amount of dollars), the bidding process must be done again, or the city has the right to accept either bid.

I understand you might be concerned that somebody tipped somebody off about the bid amount, but this would be almost impossible to prove without an investigation and a witness who is willing to testify.

InsuranceLawyer and 3 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.
would you allow me to call you and tell you the whole story.
Expert:  InsuranceLawyer replied 8 years ago.
Unfortunately, the rules of forbid contact between its experts and customers outside of this web site. However, feel free to write as much as you want here on the board and I will respond.
Customer: replied 8 years ago.
this was a lawn contract with a school system.we won the bid three years ago and was able to keep it if there was no price increase.three years was the max.we won the bid against this same person three years ago by over $3500.00 per year.we lost it this time by $340.00 a had to price it per cut for all 7 locations and give a total price also.we lost by $10.00 per cut.the contract was for 34 cuttings per year.i got my bid on wed.afternoon about4pm from the bank.he got his bid from the same bank that thur.morning before bid opening at 1pm that thur.afternoon.this man is very close to the bank president and he was the one who issued the check.i have to many people to tell me that the bank president gave this man some inside info.there is a lot more involved with whole deal involving this man and the bank president.
Expert:  InsuranceLawyer replied 8 years ago.

I used to deal with issues like this when I was a City Attorney. You could challenge the bid, but you would have to be prepared to spend a lot of money on lawyers. You would have to bring a proceeding in court, and you would have to demand depositions of the bank president and the other bidder, get phone records and documents, and hope you find the "smoking gun."

The bank, of course, would fight this action vigorously, because if you win, it basically proves that the bank president committed a crime -- bid rigging. You have to wonder why a bank president would take a risk like that to help his friend get a $50,000 contract.

If you've got any real evidence to back up your suspicions, you should talk with the District Attorney for your town. A crime may have been committed here, and having the DA investigate could possibly make your case for you.