Competition is fierce in the construction industry. Bidding for a project is often the first step to winning work. The process doesn’t always go smoothly.
A construction bid dispute happens when a contractor or company disagrees with how a bid was awarded or handled. These disputes can delay projects, cost money and create tension between parties.
What causes a bid dispute?
Bid disputes usually come from concerns about fairness. A bidder may feel their proposal was not reviewed properly. They may believe the winning bid didn’t meet the requirements. Others may suspect favoritism or unclear selection rules. In public contracts, where strict procedures apply, small errors can lead to major issues.
Different types of bid disputes
There are a few common types of bid disputes in construction. Responsiveness disputes happen when a bid is rejected for not following the stated rules. Responsibility disputes involve claims that a bidder doesn’t have the proper qualifications or resources. Award disputes challenge the final decision, often based on fairness or errors in evaluation.
Most construction companies try to avoid formal complaints. Many disputes are resolved by reviewing the process and talking directly with the other party. In public projects, there may be a set process for protests or appeals. Keeping records, sticking to bid guidelines and communicating clearly helps prevent misunderstandings.
Bid disputes are part of doing business in construction. Knowing the common causes and types can help companies avoid problems and respond effectively when they do arise. If you are in the midst of a dispute, it’s important to seek legal guidance.
