The First Baptist Church of Moultrie, Georgia, invited bids for the construction of a music, education, and

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The First Baptist Church of Moultrie, Georgia, invited bids for the construction of a music, education, and recreation building. The bids were to be accompanied by a bid bond of 5 percent of the bid amount. Barber Contracting Company (Barber Contracting) submitted a bid in the amount of $1,860,000. A bid bond in the amount of 5 percent of the bid—$93,000—was issued by The American Insurance Company. The bids were opened by the church, and Barber Contracting was the lowest bidder. On the next day, Albert W. Barber, the president of Barber Contracting, informed the church that his company’s bid was in error and should have been $143,120 higher. The error was caused in totaling the material costs on Barber Contracting’s estimate worksheets. The church had not been provided these worksheets. Barber Contracting sent a letter to the church, stating that it was withdrawing its bid. The next day, the church sent a construction contract to Barber Contracting, containing the original bid amount. When Barber Contracting refused to sign the contract and to do the work for the original contract price, the church signed a contract with the secondlowest bidder, H & H Construction and Supply Company, Inc., to complete the work for $1,919,272. The church sued.

Barber Contracting and The American Insurance Company, seeking to recover the amount of the bid bond. Who wins? Did Barber act ethically in trying to get out of the contract? Did the church act ethically in trying to enforce Barber’s bid? First Baptist Church of Moultrie v. Barber Contracting Co., 189 Ga.App. 804, 377 S.E.2d 717, Web 1989 Ga.App. Lexis 25 (Court of Appeals of Georgia)

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