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I found a math error after the bid opening. Can I withdraw my bid without losing the bid bond?

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We were the low bidder on a county paving IFB for a local road project, but the gap between us and the next bidder is significant. My team found a spreadsheet error in one unit price calculation after the bid opening. The county purchasing department told me they plan to award next week. I know our bid bond is on the line, and I need to figure out how to withdraw this bid without losing it. What kind of evidence does the county need to see to accept a bid withdrawal for a mistake? When does the surety company have to pay the difference if we can't withdraw it?

asked Luis A. Verified vendorSDVOSB founder, court reporting and legal support · San Antonio, TX · 370 rep

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You can withdraw your bid without losing the bid bond if you can prove the mistake was a clear clerical or mathematical error, not a judgment error, and the county has not yet awarded the contract.

For federal bids, FAR 14.407-3 covers mistakes in bids after opening. The county will have its own procurement code or regulations that outline the process for handling bid mistakes. You need to provide clear, convincing evidence that the error was a factual mistake, like a miscalculation or a transcription error, and not an error in judgment about the cost of materials or labor. This evidence usually involves your original work papers, spreadsheets, and any other documentation that shows how the incorrect unit price was derived and how it differs from your intended price. The county needs to see that the mistake is obvious and that enforcing the bid as submitted would be unconscionable. If the county agrees to the withdrawal, your surety company is off the hook. If they don't, and you refuse to perform, the surety company would then be obligated to pay the difference between your bid and the next low responsive bid, up to the penal sum of the bid bond.

answered Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 598 rep
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You can withdraw your bid without losing the bid bond if the county's procurement rules allow for correction or withdrawal of bids due to obvious clerical or mathematical errors. Marcus is right that the county will look for clear evidence. Your county will have its own code for handling bid mistakes after opening, similar to how the federal government uses FAR 14.407. The key is to show the error was an honest mistake in calculation, not a misjudgment of the work. You need to provide your original estimate sheets and the calculation where the error occurred. The county needs to see that the mistake is so significant that it would be unfair to hold you to the bid. If the county agrees to the withdrawal, your bond is safe. If not, and you refuse the award, the surety pays the difference up to the bond amount.

answered Tom B. Construction estimator, public works · Phoenix, AZ · 322 rep

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Sign up to answerCite the FAR clause or procurement code where you can.