Legal Updates

The opening of the tender box prior to the tender’s closing time may cause the tender to be canceled

September 6, 2018
Print

In each of three tenders issued by the Ministry of Construction and Housing due to a clerical error three different hours for tender closing appeared: the instruction page stated that the bids must be submitted by 10:00, at the bottom of the instructions page, and in the press publication it was noted that the time was 11:00. The tender's appendix stated the hour of submission as 12:00, an hour the website also indicted. In practice, the tender box was closed at 11:00 and each tender had only one bid. Despite that, at 11:30 another bid was accepted after the bidder contended that it was possible to submit it by 12:00. This bid was the cheapest and therefore won all three tenders.

The Supreme Court held that from the duty to ensure equality, as well as from the authority's duty to act fairly, stems the duty to comply with the final date set for submission of bids, as noted in the tender documents, and proposals that were not in the box at the closing date of the tender will not be reviewed at all. When there are a number of interpretations, one should accept the interpretation that fulfills the bids of the bidder and not the one that disqualifies them. Therefore, the correct interpretation is that the tender closing time was 12:00. Opening the tender box prior to the tender's closing date leads to the tender's disqualification, but because the petition's hearing took place after the works have already been carried out, the tender was canceled but only as a declaration and without any change of the work performed. However, anyone who can prove that he could have won the tender could file a monetary claim for his damages.