BID QUESTIONS Assignment Value: 50 Points FORMAT: Read the Factual Background below and answer the questions. QUESTIONS: 1. What does it mean when a project is awarded to the lowest price bidder (10 Points)? 2. Did Subcontractor A breach a contract with Sun Devil Construction (10 Points)? Yes _________ No __________ Explain: 3. If Sun Devil Construction files a lawsuit against Subcontract A, can it recover damages from Subcontractor A (10 Points)? Yes ___________ No _____________ How much are the damages: $_________________________

4. Who will win if Sun Devil Construction files a lawsuit against Subcontractor A? (10 Points) A. Sun Devil Construction B. Subcontractor A C. The General Public D. None of the Above 5. If Subcontract B states that its bid has expired and refuses to enter into a subcontract with Sun Devil Construction, can Sun Devil Construction file a lawsuit against Subcontractor B in order to force them to perform (10 Points)? Yes ____________ No _______________ FACTUAL BACKGROUND You are the attorney for Sun Devil Construction. It is March of 2010 and Sun Devil is preparing to submit a bid on a government project. The project will be awarded to the lowest responsive responsible bidder. The project includes the installation of micropiles. Sun Devil has received three proposals from subcontractors. Its bid is due to the owner by March 31, 2010. Subcontractor A - submitted a bid for $97,520.00. Included in its bid was the design (engineering) and construction of the necessary micropiles. Subcontractor A submitted its bid on March 15, 2010. After reviewing Subcontractor A's bid Devil had a few questions. Devil raised his questions with Subcontractor A, who asked for the opportunity to review its bid. Devil agreed to this request on behalf of Sun Devil. Subcontractor B - submitted a bid for $122,500.00. Included in its bid was the construction of the necessary micropiles. Subcontractor B submitted its bid on March 28, 2010. Subcontractor C - submitted a bid for $128,500.00. Included in its bid was the construction of the necessary micropiles. Subcontractor C submitted its bid on March 28, 2010. On March 30, 2010, Subcontractor A emailed Devil apologizing for the delay and pleading with Devil to give him an opportunity on this project. Subcontractor A's bid stated that the price was

good for 30 days. Subcontractor A revised its bid price to $99,200.00 (still including design and construction of the necessary micropiles). On March 31, 2010, Devil submitted Sun Devil's bid to the owner, which included Subcontractor A's revised bid price of $99,200.00. Devil also included in Sun Devil's submittal a list of subcontractors, which included Subcontractor A's name as well as design and construction qualifications provided to Devil by Subcontractor A. Notably, Subcontractor A wanted to request a substitution of the type of grout specified for the project. Subcontractor A believed that the substituted grout is more durable and will provide a cost savings. On May 1, 2010, Devil was notified by the owner that Sun Devil was the low bidder and that Sun Devil would likely be awarded the project. On May 2, 2010, Devil notified Subcontractor A that Sun Devil had been awarded the project and Devil would like to meet with Subcontractor A. On May 7, 2010, Devil met with Subcontractor A to go over its bid. At this meeting, Subcontractor A agreed to begin the design work. This was extremely important because Sun Devil had agreed to commence construction activity on or before August 1, 2010. Devil relayed this information to Subcontractor A, who responded that it could make this deadline. On June 1, 2010, Subcontractor A attended the first pre-construction meeting Sun Devil conducted with the owner. On June 17, 2010, Subcontractor A sent Devil an email concerning the status of the substitution request. On June 19, 2010, Devil notified Subcontractor A that the owner had approved the substitution request. On June 21, 2010, Subcontractor A sent Devil an email, which stated that the design should be complete by July 1, 2010. Because construction was scheduled to start on August 1 it was important for Sun Devil to have the design submitted to the Owner by July 15. On July 2, 2010, Devil received an email from Subcontractor A. In this email, Subcontractor A stated that it was no longer willing or able to perform the design or construction work on this project. Among other things, Subcontractor A had other commitments, which it was required to honor. Sun Devil Construction contracted with Subcontractor B who completed the project.