INVITATIONS TO TENDER AND CONTRACTUAL LIABILITY

J & A Development Ltd v Edina Manufacturing Ltd [2007] Construction Industry Law Letter 2417

In J & A Development Ltd v Edina Manufacturing Ltd [2007] Construction Industry Law Letter 2417 the High Court of Justice in Northern Ireland held that an invitation to tender gave rise to a contractual obligation on the part of the party inviting tenders not to depart from the Code of Procedure incorporated into the tendering process. The court held that the party inviting the tender was liable not only for the wasted expenditure incurred by the party whose tender was rejected in breach of the principles laid down in the Code but also for the loss of profit suffered as a result of the failure of that party to obtain the contract which it would otherwise have been awarded. The party inviting the tenders sought to recover a contribution from the architect who was advising it on the tendering process but the claim for a contribution failed on the facts.