Public tender: the owner's right to negotiate with the lowest bidder whose bid exceeds the estimated cost of work

In the present case, the Quebec Court of Appeal had to interprete the provisions of a public tender document providing that if a contractor's bid exceeded the estimated cost of the owner, the owner could negotiate with the lowest bidder to develop modifications for cost reduction. In this case, the changes proposed by the tenderer were not suitable for the owner and he was able to increase its budget to accept the initial contractor's bid as it is. The Court of Appeal confirmed that the owner could do so, without making another bid, if it was possible to increase its budget in order to contract with the lowest bidder. (Axor Construction Canada inc. v. Bibliothèque et archives nationales du Québec, 2012). Dubé Légal inc., Montreal commercial lawyers.