The Case of the Bid-Shopping Contractor

School Corporation decided to build an annex to its senior high school. Plans and specifications were prepared, and various building firms were invited to submit bids. Among those contacted was Contractor. The latter, in turn, determined to submit a bid and proceeded to contact potential subcontractors relative to various components of the project. When soliciting bids from subcontractors, Contractor insisted that all bids/offers specify acceptance by promise (after Contractor is awarded the project by School Corporation) as the only possible mode of acceptance; and all subcontractors met this requirement.

Subcontractor A emailed a bid for the excavating work. Since this was the low bid of the responding excavating subcontractors, Contractor used A's figure in computing his bid to School Corporation. Subcontractor B emailed a bid for the electrical work, which Contractor also used

in computing the general bid since B's price was the lowest of the electrical subcontractors. Subcontractor C emailed a bid for the plumbing component, and it, too, was used by Contractor in preparing the general bid.

At the bid opening on March 18, Contractor was found to be the lowest bidder, and two days later was awarded the contract. Armed with this award, Contractor immediately sought out other excavating subcontractors in an effort to get a lower figure, but he was unsuccessful. On March 22, he emailed an acceptance to A. He fared better, however, with respect to the electrical work. He secured, on March 23, the agreement of subcontractor D to do the work for $15,000 less than specified by B. He took no further action regarding B's bid.

At the bid opening Contractor mentioned to another general contractor that he thought C's bid on the plumbing work was too high and that he could do much better elsewhere. Two days later the other contractor told C of this conversation, and the latter, thinking Contractor would not want him to do the work, accepted an outstanding offer from another. However, Contractor did not seek out other plumbing subcontractors, and on March 24 undertook to accept Cs offer.

Contractor is now beset with problems. A and C refuse to perform; B insists he has a binding contract for the electrical work. Contractor consults you. Advise him both as to his present difficulties.