May a municipality negotiate on the basis of changed plans with the low bidder?
This question usually arises when all
bids received on a particular project are much higher than the
municipality estimated the project would cost. In such situations,
League attorneys are frequently asked whether the municipality can alter
its plans and specifications and negotiate for a reduced price with the
low bidder. We have consistently opined that the competitive bidding
process prohibits a municipality from negotiating with either the lowest
or low bidders on the basis of materially-altered plans and
specifications. Contracts # 202, # 306 and # 339. If plans and
specifications are to be changed, that change must affect all bidders
and place each on an equal footing. A municipality should rebid a
proposed public construction project when it proposes to substantially
alter the plans and specifications by decreasing the work. A
municipality may change the plans or specifications before receiving any
bids by issuing an addendum to all potential bidders informing them of
the modification.