Reference no: EM131256356
Microsoft Word - Major Writing Assignment 2.doc
Use the IRAC method
The Clovis Unified School District ("CUSD") decided it wanted to build a new gym at Clovis High School and sent the project out for bidding. At the same time CUSD was also building a new high school at Willow Avenue north of Sheppard ("Willow High School"), and when they sent the gym out for bidding they incorrectly listed it as being built at Willow High School and not at Clovis High School.
Dave's Dry Wall Company had previously obtained the contract for dry wall of several class-rooms at Willow High School and decided to bid for the dry wall work at the gym believing it was at Willow High School. Further, when they calculated the cost of doing the work they based their estimate on the cost savings that would occur because they already would be working at Willow High School. As a result they were able to save approximately $3,000 over other potential bidders.
CUSD caught the error on the gym bid notice three days before the bids were to be received. A day later it sent a notice out by mail to all potential bidders, including Dave's Dry Wall. Dave did not receive the notice until the day the bid was due, and on that day its mail person was out sick. As a result they did not become aware of the notice until the next day (note: if the mail person had been there he would have caught the error before the bid was submitted to CUSD). Unfortunately, before Dave could contact CUSD and tell them about the mistake they accepted the bid. Further, Dave, after reviewing the work at Clovis High concluded that it would cost $4,000 more then the bid amount to complete the work. This would cause Dave to lose money on the project.
Dispute and question: Dave claims he should not be bound by the bid because it was the result of a mistake. CUSD on the other hand is demanding that Dave be held to his bid. They argue that they fixed the mistake, and that it was not their fault that Dave's mail person was out sick. Who should prevail? (Note: for the purpose of your answer assume there are no governmental regulations that regulate bidding for school districts.)
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