Dinn, Hochman & Potter, LLC

Contract disputes: Contractor claims city unlawfully rejected bid

When it comes to bidding on an employment contract, businesses in Ohio and elsewhere often have to compete with rivals. While in many cases the job may go to the lowest bidder, a company could decide to enlist the services of the another party instead. Should the previous business believe that this decision is unlawful, intense contract disputes may ensue.

A contractor in another state has recently filed a lawsuit against a city under similar circumstances, after it claims it was unlawfully denied a contract. The contractor asserts that it was the lowest bidder on a road and parking lot project, but the job ended up going to a competitor that was next in line. This comes just days after it filed a separate lawsuit against the same city for breach of contract in connection with payments that the city allegedly failed to provide.

A representative of the city, however, claims that the decision was purely based on the recommendation of the overseeing engineer. The engineer reportedly advised against hiring the lowest bidding contractor due to issues with its previous work in favor of one with better reviews. The representative also says that the decision was approved by the entity that is providing the majority of funding for the project.

When a business feels as though it has been illegally overlooked for a contract, it may choose to pursue legal recourse. Contract disputes can be highly contestable topics, potentially prompting a need for legal counsel throughout the process. By speaking with an experienced attorney, a client in Ohio could obtain guidance in pursuing the best possible outcome through the necessary channels.

Source: muskogeephoenix.com, "Local contractor sues city of Wagoner", D.E. Smoot, Aug. 8, 2017

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