What do the following projects have in common: the Cape May Convention Center; the Western Reserve Road Project in Ohio; and the Guantlett Community Center in Pennsylvania? They are examples of projects where all bids were rejected because they came in over budget. While there are multiple reasons for this, by far the two biggest reasons are a recent spike in basic material and fuel prices and tight government budgets.
Are rejected bids a red flag for contractors looking to avoid claims? It could be. Elected officials may not be familiar with the value engineering process and may have trouble explaining to constituents the need to accept less for more.
Moreover, an already tight budget may lead to a government authority aggressively defending claims for additional compensation related to ambiguities or defects in drawings, plans, and specifications.
This are a few things a contractor should be aware of before submitting a revised and reduced bid on a public project.