Supreme Court

Decision Information

Decision Content

                                           SUPREME COURT OF NOVA SCOTIA

                    Citation: Santec Construction Managers Ltd, v. Windsor (Town), 2005NSSC132

 

                                                                                                                               Date: 20050624

                                                                                                                      Docket: S.H. 173161

                                                                                                                             Registry:  Halifax

 

Between:

 

Santec Construction Managers Limited,

a body corporate

 

                                                                                                                                               Plaintiff

 

                                                                           and

 

Town of Windsor

 

 

 

 

                                                                                                                                          Defendant

 

                                                         LIBRARY HEADING

 

 

Judge:                                   The Honourable Justice C. Richard Coughlan

 

Heard:                                   October 18, 19, 20, 21 and 25, 2004, January 4, 5, 6 and 21, 2005 and February 4, 2005, at Halifax, Nova Scotia

 

Final Written

Submissions:                      February 14, 18 and 25, 2005

 

Decision:                              June 24, 2005                                              

 

Subject:                                Contract - Tendering Process - Compliant Bids - Duty to Treat Tenderers Fairly and Equally   

 


Summary:                            The Town of Windsor decided to build a Water Treatment Plant.  It retained CBCL Limited as its consultant on the project.  Tenders were called.  Santec submitted the lowest bid.  CBCL had previous experience with Santec that it viewed unfavourably.  While not saying Santec was not qualified to do the job, CBCL reported to the Town the increased level of supervision Santec required would increase the cost of the Project to the Town.  The Town awarded the contract to Winbridge Construction Limited, the second lowest bidder.

 

Issue:                                    Was Winbridge’s bid compliant?

 

Did the Town fulfil its obligation to treat Santec fairly in awarding the contract?

 

Result:                                  The Tender required tenderers to give information in bids including the names of subcontractors to be employed.  Winbridge, in its tender bid, used the expression “own estimate” for the civil site work, formwork and contract finishes.  Winbridge did not give the names of subcontractors to be used in those areas.  Winbridge intended to use subcontractors.  By not giving the required information, Winbridge’s bid was non-compliant.  In awarding the contract to Winbridge, the Town breached its obligation to award the Tender to a compliant bidder.

 

Santec was not treated fairly in the tendering process.  Before Santec’s bid was analyzed, it is clear CBCL had concerns about awarding the contract to Santec.  The manner in which the Santec and Winbridge bids were reviewed makes it clear the contract was not going to be awarded to Santec.  Any shortcomings or lack of information in the Winbridge bid was excused or not a concern to CBCL.

 

Santec is entitled to damages for breach of contract.

 

 

 

 

 

 

 

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