Way paved for court to rule on contract dispute
The city's tender process will become a question for the Yukon Supreme Court.
The city's tender process will become a question for the Yukon Supreme Court.
Castle Rock Enterprises is suing the city over a city-wide asphalt overlay project, arguing its bid of $834,228.50 to do the work should not have been rejected.
Castle Rock's was the lowest of two bids to come in on the work.
After its offer was rejected as being incomplete for not including the résumés of supervisory staff, city council voted in favour of awarding the work to Skookum Asphalt, which had submitted a bid of $867,084.50.
In its court file, Castle Rock cites sections of the tender documents showing that résumés of supervisory personnel were to be included in the bid.
It also argues the city is obligated to treat all bidders fairly and accept all bids that are materially compliant.
"Castle Rock claims that the city unfairly and without proper grounds rejected the Castle Rock bid,” reads the statement of claim.
It goes on to argue it had the lowest bid and was willing and able to complete the asphalt overlay project.
It, therefore, should have been awarded the bid.
The city's rejection of the bid means that Castle Rock has suffered damages, including both loss of profit and the loss of opportunity to invest.
Castle Rock does not state a dollar amount it is seeking, rather noting the amount would be determined at the hearing.
Along with the loss of profit and opportunity, Castle Rock is seeking costs, pre- and post- judgment interest and anything further the court deems just
A case management conference has been booked for Dec. 17.
When the contract came up for award last June and Castle Rock officials first brought their arguments to the city, Kirk Cameron was the only member of council to vote against having the work go to Skookum.
He argued that, at the very least, the city needed to look at whether its process is fair.
Other council members stated their agreement with city staff that the requirement for the résumés in the tender was clear and, therefore, by not submitting it, the bid was non-compliant.
Acting city manager Brian Crist confirmed at that time the city had looked at the possibility of a judicial review on the matter, given the concerns brought up by Castle Rock.
However, with the earliest available court date of July 26, it would have been too late in the construction season to finish the work, which sees a number of road repairs done around the city.
The city did obtain a legal opinion from its lawyers at that time to support awarding the work to Skookum.
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