Court of Appeal Affirms the Discretion of a City in Waiving an Error in a Bid for a Public Works Project

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Meyers Nave Principal Benjamin Reyes and Associate Eric Casher successfully defended the City of San Leandro ("City") in a legal challenge brought by a disappointed bidder in a major public works case.  On January 28, 2014, the Court of Appeal, First Appellate District, affirmed the decision of the City in waiving a bid defect in the case, Bay Cities Paving & Grading v. City of San Leandro, et. al.   The case was certified for publication on February 13, 2014.  There, the Court held that the City did not abuse its discretion by accepting an immaterial deviation in the low bidder's bid bond.  In applying the substantial evidence standard of review, the Court evaluated the City's actions and determined that it had properly complied with its procedures.  Accordingly, the Court did not second guess the City's decision in awarding the contract for the BART Pedestrian Interface Project to the low bidder, Gallagher & Burk, Inc.  

 

In a well-reasoned opinion, the Court reinforced the well-established rules that a bid which substantially conforms to a request for bids may, though not strictly responsive, be accepted if the variance cannot have affected the amount of the bid or given a bidder an advantage or benefit not allowed other bidders.

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