Contracts: When can a tender price be changed after the closing date?

Basic contractual principles provide that in order to have an offer capable of immediate acceptance there must be certainty of price. As a result, in a traditional tender process, price is an essential element of the tender. If an error is discovered after submission however, to what extent can a tender price be altered?

Often pricing schedules are complicated and in cases of fixed lump sum contracts, there can be many elements which make up the final price. With complicated pricing structures, it is not uncommon for there to be errors in the pricing information submitted which can impact (both positively and negatively) on the final lump sum price.

An issue that is often faced by owners is the extent to which corrections can be made to pricing schedules following the close of tenders when such errors are discovered. In Australia, as in other common law jurisdictions, the equitable doctrine of rectification may, subject to the tender conditions, permit a very