Public Works Projects: Unsuccessful Bidder May Recover Bid Preparation Costs

7/21/2010,

The Supreme Court of Ohio has ruled that when a rejected bidder can show that a public authority has violated state competitive bidding laws in awarding public improvement contracts, the unsuccessful bidder may recover reasonable bid-preparation costs if the bidder already promptly sought, and was denied, an injunction to suspend work on the project.

The Court held that because the work was already started when it was later determined that the public authority wrongfully awarded the contract, the injunctive relief was no longer applicable for the wronged bidder, and bid-preparation costs were the only relief available.

For the Ohio Supreme Court opinion, see Meccon, Inc. v. Univ. of Akron, Slip Opinion No. 2010-Ohio-3297 (Decided July 21, 2010).