TO: Mayor and Town Council
FROM: Ralph D. Karpinos, Town Attorney
SUBJECT: Delegation of Authority to Conduct Hearing on Bid Withdrawal
DATE: June 20, 2005
The attached resolution would delegate to the Town Manager the authority to conduct hearings and make determinations under North Carolina General Statute 143-129.1 regarding whether a bidder on a Town construction project has adequate grounds to withdraw its bid.
Under North Carolina public contracting statutes, once a bid on a public project has been submitted, it may be withdrawn without forfeiture of the bidder’s 5% bid bond if the price bid was based on a mistake that constitutes a substantial error and the bid was submitted in good faith. A bidder seeking to withdraw its bid without the loss of bid bond penalty must present credible evidence to support its request.
A hearing is required to be conducted promptly under State law. A decision made after such hearing not to allow the bid to be withdrawn results in a forfeiture of the bid bond. The bidder may seek review of such a decision by the Courts, which conducts its own hearing.
The low bidder on the off-site roadway improvements contract associated with the Town Operations Center has submitted a request to withdraw its bid from consideration without forfeiture of its bid security based on unintentional substantial mistakes. The attached resolution would delegate to the Town Manager or his designee the authority to conduct the required hearing and make the determination whether there are sufficient grounds to allow the bid to be withdrawn without forfeiture of the bond. The resolution would further authorize the Manager to conduct such hearings and make decisions in any future cases.
That the Council adopt the attached resolution.
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO CONDUCT HEARINGS AND MAKE DETERMINATIONS ON UNDER N.C. GENERAL STATUTE SECTION 143-129.1 REGARDING WHETHER BIDS MAY BE WITHDRAWN WITHOUT LOSS OF BID SECURITY BASED ON SUBSTANTIAL ERRORS MADE IN GOOD FAITH (2005-06-20/R-2)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager or his designee is hereby authorized to conduct hearings and make determinations required by North Carolina General Statute Sec. 143-129.1 regarding the withdrawal of bids based on substantial mistake without forfeiture of bid bonds.
This the 20th day of June, 2005.