When Bids Go Bad: Enforcing Subcontractor Commitments In A Volatile Market

You're a general contractor (GC) submitting a competitive bid to an owner. A subcontractor (sub) submits a fixed bid for $2 million in electrical work. You factor that number into your prime bid, submit it to the owner, and win. The next morning, the sub calls and tells you that there's been "an error." The sub is now demanding $2.5 million for the work, or they walk. The owner is breathing down your neck. Your margin has taken a big hit. Can you force the sub to honor its initial price or collect damages if they do not?

Now reverse the scenario: You're the sub. You locked in material prices based on a letter of intent from the GC. Days later, after you've incurred costs, the GC decides to shop your bid elsewhere or renegotiate. Can you force the GC to give you the work for the price you offered or collect damages if they do not?