Marion T. Hack, a partner in the Construction Practice Group of Pepper Hamilton, was quoted in the August 31, 2016 Northern California Record article, "Court Ruling Puts Limitations on a Contractor's Recovery for Damages."
To avoid something similar happening, Marion Hack, partner with Pepper Hamilton LLP, suggests general contractors take extra measures to protect themselves.
“Put your subcontractors on notice, prior to receiving bids, that non-price terms in bids will not be accepted by the general contractor at bid time,” Hack told the Northern California Record.
Hack also said general contractors must scrupulously read all bids submitted.
“Scrutinize all bids for obvious and prominent terms that are unacceptable and make an informed choice whether to accept and rely on those bids,” she said.
While this case involves general contractors in the construction industry, Hack said it could impact businesses and contractors in other areas.
“Any industry that accepts bids from multiple vendors and then relies on those bids when submitting its own bid to an owner or buyer could be subject to this ruling,” she said. “I have not seen it apply to other industries yet, but certainly think it can under the right circumstances.”