A Research on Bidding Price Mistake under Government Procurement System
Date Issued
2009
Date
2009
Author(s)
Chen, Yen-Chih
Abstract
Low bid is a commonly seen claim in government procurement disputes. In some circumstances, the lowest bidder withdraws the award in exchange for commission from the second lowest bidder. It is also possible that the low bid is due to mistakes of price calculation. Nevertheless, bidders are not permitted to claim bidding price mistake under Taiwanese government procurement regulations, and the system is in favor of the government. Does it mean that the officials are granted complete authority and the interests of bidders can be ignored？his article discusses remedies of bidding price mistake from the standpoints of government procurement regulations, comparative law, and civil law. Under current Taiwanese Government Procurement Code, the regulations on unreasonable low bid not only prevent bidders from performing the contract in good will but also neglect bidders’ right. Furthermore, the government gains interest on the base of unreasonable low price, which seems to contradict the doctrine of good faith. Hence, this article advocates that remedies of bid mistake should be included in Government Procurement Code.n respect to comparative law, I introduced the regulations under Common Law and Federal Acquisition Regulations as role models for Taiwanese government procurement system. Case law rule allows unilateral withdrawals of inadvertently erroneous bids from the bidder. U.S. federal procurement system, deriving from contracting law, permits bid correction or withdrawal before award and reformation or rescindment after award under certain circumstances.rom the standpoint of mistake and fault in contract-making in civil law, the bidder is permitted, under certain circumstances, to claim mistake and withdraw the bid in case of bid mistakes. In addition, the government should be obliged to inform bidders evident bid mistake, due to the unbalance of information disclosure. In the process of opening bid, an accompanying duty of informing bidder obvious mistake imposed on the government can avoid later disputes, and a breach of this duty will constitute pre-contract fault.
Subjects
bid mistake
bidding price
government procurement
low bid
Federal Acquisition Regulations
mistake
Type
thesis
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