A small municipality advertised in several newspapers a call for tenders to complete road construction.After the tenders had been submitted the job was not awarded to any of the prospective bidders.The municipality,on the recommendation of a neighbouring township,contacted another firm and awarded it the contract on the basis of price and reputation.After learning of this development the companies that had bid on the advertised tender joined forces and brought a suit against the municipality.They will be successful.

Question

Quizplus · Accepted Answer

While it may seem unfair to the companies that bid on the advertised tender, municipalities and other public bodies are generally not required to award contracts to the lowest bidder. As long as the municipality followed proper procedures and made a decision based on legitimate factors, such as price and reputation, it is unlikely that the companies would win a lawsuit against the municipality.

A Small Municipality Advertised in Several Newspapers a Call for Tenders