Question
On Feb. 2, 2021, the City of West Hollywood sent out a request for bids (RFB - a bid is an offer to do the
On Feb. 2, 2021, the City of West Hollywood sent out a request for bids ("RFB" - a bid is an offer to do the work for a specific amount of money) with specifications to provide for the construction of a new library. The request noted that all bids must be submitted no later than April 15, 2021, and must remain open until May 15, 2021. Clare, the owner of Clare Contractors, Inc. construction company, heard about the RFB and wanted to submit a bid in hopes that her company would be awarded the contract. Clare knew that she would need to hire numerous subcontractors, including electrical, painting, and drywall, to name a few. So, on Feb. 17, 2021, Clare Contractors, Inc. sent out a request for bids to various subcontractors, including a request for drywall subcontractors. Clare's request noted that "all bids are due no later than March 17, 2021, and will be used to create Clare Contractor Inc.'s bid to construct the West Hollywood Library, and therefore all bids submitted by subcontractors to Clare's must remain open for 90 (ninety) days." On March 15, 2021, Jim's Drywall submitted a bid to do the project's drywall per specifications for $280,000. On the reverse side of the bid form, in 9-point, the pale gray font was written various terms,
including the clause, "This bid to remain open for 10 (ten) days from the date of submission."
On April 2, 2021, Clare submitted a bid from Clare Contractor Inc. to the City of West Hollywood to construct the library. Clare incorporated into her bid the cost of $280,000 for drywall installation. On April 22, 2021, the City notified Clare that she had been awarded the project and the City was accepting her bid. The next day, Clare signed the Jim's Drywall bid and faxed the agreement to Jim. Jim responded that the bid was no longer good and that because of a rise in the cost of materials related to the Covid-19 pandemic, the new bid would be $380,000. Clare reached out to other drywall companies to try to replace Jim's company, but they all quoted prices over $300,000.
What are the applicable laws in this case?
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