Question
Tower Installation Co., by way of a newspaper advertisement, learned of an invitation to bid on the engineering work for an electric-power transmission-tower line that
Tower Installation Co., by way of a newspaper advertisement, learned of an invitation to bid on the engineering work for an electric-power transmission-tower line that a hydro-electric corporation wished to have erected in a remote area of the province. The advertisement indicated that the right-of-way had been laid out, and preliminary site preparation was in the process of completion. Engineers from Tower Installation Co. visited the site before making a bid. They noticed that many downed trees and branches cluttered the rightof-way throughout the entire length of the proposed line. The engineers assumed that the downed trees and branches were part of the preliminary site preparation. The proposed contract stipulated that the successful bidder would be "responsible for the removal of standing trees and brush in those areas where they had not been cleared, and the final site preparation." The proposal also stated that the bidders must inform themselves of all aspects of the site and the work to be done. Tower Installation Co. submitted its bid to perform the required work based upon its examination of the site and the proposed contract terms. Some three months later, the contract was awarded to Tower Installation Co. It immediately sent its engineers and work crews to the construction site to begin work. To the surprise of the engineers, the downed trees and branches still remained on the site, as no further work had been done since the site was visited before. The company engineers complained to the hydro-electric corporation, but were told that they should have enquired about the logs and downed trees before making their bid on the work. Tower Installation Co. proceeded with the contract and completed it in accordance with its terms. The company, however, lost $2 million as a result of the extra work required to clear the downed trees and branches from the right-of-way. Tower Installation Co. took legal action against the hydro-electric corporation for the amount of its loss on the contract. Discuss the basis of the claim in this case and the possible defences of the corporation. Render a decision.
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