Ghilotti Construction Co. v. City of Richmond

In this case we hold that a public entity may waive inconsequential deviations from contract specifications in a public contract bid. To be considered inconsequential, a deviation must neither give the bidder an unfair competitive advantage nor otherwise defeat the goals of insuring economy and preventing corruption in the public contracting process.

Appellant Ghilotti Construction Company (GCC), the second lowest bidder on a contract for a road construction project in respondent City of Richmond (the City), petitioned the trial court for a writ of mandate or prohibition to prevent the City from contracting with the low bidder on the project, real party in interest Ghilotti Brothers Construction, Inc. (GBCI). GCC contended GBCI’s bid deviated from contract specifications because it showed that GBCI would subcontract more than 50 percent of the work on the project. The trial court denied the petition. We affirm. The city council properly awarded the contract to GBCI, finding the irregularity in its bid insubstantial.

Background

The City issued an invitation for bids on a construction project on Cutting and Canal Boulevards (the Cutting/Canal Project) in May 1995. The…