The Ins And Outs Of Bid Protests In Construction Law

In this article, you can discover:

• Why understanding the bid protest process is crucial for contractors.
• How bid protests differ among various public agencies and their unique rules.
• The importance of timely action in filing bid protests to avoid forfeiting rights.

What Is A Bid Protest In The Context Of Construction Law? When Might A Contractor Or A Bidder Decide To File A Bid Protest?

A bid protest occurs under specific conditions when a contractor bids on a project, typically managed by a public agency. Public agencies are obligated to accept the lowest responsible bid. However, complications arise if the agency deems the bidder irresponsible due to past violations or other disqualifying factors.

In contrast, bid protests are not applicable in private projects because private entities are not bound by law to accept the lowest bid; they may select any bid they prefer based on their criteria.

What Are Typical Grounds For Challenging A Bid Decision?

Challenges to a bid decision can be based on evidence of corruption, such as if the selecting official has accepted bribes. Other valid grounds include procedural dishonesty or if an accepted bid was submitted late compared to a timely one from another bidder. To challenge a bid, the aggrieved party must file a notice of claim, typically directed at the financial officer of the involved agency.

How Do Bid Protests Differ Across Various Agencies?

The process and basis for bid protests can vary significantly between different governmental entities. For example, whether the bid is for a project under the jurisdiction of New York City, New York State, or other specific agencies like the Metropolitan Transportation Agency or the Throughway Authority. Each entity has distinct regulations governing how bids are protested.

What Is The Time Limit For Filing A Bid Protest?

It’s crucial to be aware of the time constraints involved in filing a bid protest. Under the Civil Practice Law and Rules, there is a four-month statute of limitations for initiating a bid protest in state court, known as an Article 78 proceeding. Missing this deadline effectively nullifies the protest, making it impossible to pursue further.

For more information on Handling Bid Protests In Construction Law, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 371-5800 today.