§2214. Designation of time and place for opening bids; right to reject bids
A. The public entity desiring to let a public contract shall, in the advertisement for bids, designate the time and place that the bids will be received and shall at that time and place publicly open the bids and read them aloud ; however, no public entity shall accept or take any bids, including receiving any hand-delivered bids, on days which are recognized as holidays by the United States Postal Service.
B. The public entity may reject any and all bids for just cause. Just cause for the purpose of the construction of public works is defined, but is not limited to the following circumstances:
(1) The public entity's unavailability of funds sufficient for the construction of the proposed public work.
(2) The failure of any bidder to submit a bid within an established threshold of the preconstruction estimates for that public work, as part of the bid specifications.
(3) A substantial change by the public entity prior to the award in the scope or design of the proposed public work.
(4) A determination by the public entity not to build the proposed public work within twelve months of the date for the public opening and reading of bids.
(5) The disqualification by the public entity of all bidders.
C. Bids containing patently obvious, unintentional, and substantial mechanical, clerical, or mathematical errors, or errors of unintentional omission of a substantial quantity of work, labor, material, or services made directly in the compilation of the bid, may be withdrawn by the contractor if clear and convincing sworn, written evidence of such errors is furnished to the public entity within forty-eight hours of the bid opening excluding Saturdays, Sundays, and legal holidays. Such errors must be clearly shown by objective evidence drawn from inspection of the original work papers, documents, or materials used in the preparation of the bid sought to be withdrawn. If the public entity determines that the error is a patently obvious mechanical, clerical, or mathematical error, or unintentional omission of a substantial quantity of work, labor, material, or services, as opposed to a judgment error, and that the bid was submitted in good faith it shall accept the withdrawal and return the bid security to the contractor.
D.(1) A contractor who attempts to withdraw a bid under the provisions of this Section shall not be allowed to resubmit a bid on the project. If the bid withdrawn is the lowest bid, the next lowest bid may be accepted. If all bids are rejected no withdrawal of the bid which would result in the award of the contract on another bid of the same bidder, his partner, or to a corporation or business venture owned by or in which he has an interest shall be permitted. No bidder who is permitted to withdraw a bid shall supply any material or labor to, or perform any subcontract work agreement for, any person to whom a contract or subcontract is awarded in the performance of the contract for which the withdrawn bid was submitted.
(2) Whoever violates the provisions of the foregoing sentence shall be imprisoned for not more than six months, or fined not more than two thousand dollars, or both.
Acts 1991, No. 1043, §1, eff. July 26, 1991; Acts 1995, No. 484, §1; Acts 2010, No. 625, §1, eff. August 15, 2010.
Notes of Decisions
New Orleans Rosenbush Claims Serv., Inc. v. City of New Orleans, 653 So. 2d 538 (La. 1995).
· cites it 27× “JUST CAUSE Rosenbush argues that the Fourth Circuit's decision, holding that a bidding authority may reserve the right to reject all bids "without just cause," is contrary to the provisions of LSA-R.S. 38:2214 and to several cases decided by the First and Second Circuit Courts…”
Broadmoor, LLC v. Ernest N. Morial Exhibition, 867 So. 2d 651 (La. 2004).
· cites it 2× “In interpreting various amendments to the Public Bid Law, specifically, LSA-R.S. 38:2214, in New Orleans Rosenbush Claims Service, Inc.”
Pittman Const. Co., Inc. v. Par. of E. Baton Rouge, 493 So. 2d 178 (La. Ct. App. 1986).
· cites it 5× “While the jurisprudence reflects many cases in which the discretion afforded is described as "wide," the 1982 and 1983 amendments to LSA-R.S. 38:2214 restricted the discretion to reject any and all bids which had been historically reserved to public entities, and now requires…”
State Mach. v. Iberville Council, 952 So. 2d 77 (La. Ct. App. 2006).
· cites it 3× “The opening of such bids is governed by the provisions of LSA-R.S. 38:2214. LSA-R.S. 38:2212.1(J). A public entity may reject any and all bids for just cause.”
HAMP'S CONST. v. City of New Orleans, 924 So. 2d 104 (La. 2006).
“R.S. 38:2214, allowing a public entity to reject "any and all bids for just cause," by merely reserving the right to reject any and all bids in the bid proposal).”
Bristol Steel & Iron Works v. State, 507 So. 2d 1233 (La. 1987).
· cites it 2× “LSA-R.S. 38:2214 A(2). [5] T.L. James-Boh Brothers, which are not parties to the suit, might also have been eligible for a five percent preference.”
State in Interest of AC, 643 So. 2d 719 (La. 1994).
“R.S. 38:2214(C) & La.R.S. 39:1594(F) (withdrawal of public contract bids for patent errors); La.”
Barriere Const. v. Terrebonne Consol. Gvt., 754 So. 2d 1123 (La. Ct. App. 2000).
· cites it 2× “LSA-R.S. 38:2214 B. The statute defines certain situations that constitute "just cause," but states the definition is not limited to those circumstances.”
Wallace C. Drennan, Inc. v. Sewerage & Water Bd., 798 So. 2d 1167 (La. Ct. App. 2001).
“R.S. 38:2214 and 38:2215, the governing authority has 30 calendar days from the opening of the bids: (1) to award the contract to the lowest responsible bidder; (2) to reject all bids; or (3) negotiate an extension of time with the lowest responsible bidder.”
C.R. Kirby Contractors, Inc. v. City of Lake Charles, 606 So. 2d 952 (La. Ct. App. 1992).
· cites it 4× “When the variance in the bid does not, affect the integrity of the contract; does not result in favoritism or prejudice to the bidders or to the taxpaying public; does not permit circumvention of the Public Bid Law or the rules of open and fair competition and does not…”
La. Rev. Stat. § 38:2214(A)(1): 1 case
La. Rev. Stat. § 38:2214(A)(2): 7 cases
C.R. Kirby Contractors, Inc. v. City of Lake Charles, 606 So. 2d 952 (La. Ct. App. 1992).
“When the variance in the bid does not, affect the integrity of the contract; does not result in favoritism or prejudice to the bidders or to the taxpaying public; does not permit circumvention of the Public Bid Law or the rules of open and fair competition and does not…”
La. Rev. Stat. § 38:2214(A)(3): 2 cases
La. Rev. Stat. § 38:2214(B): 8 cases
New Orleans Rosenbush Claims Serv., Inc. v. City of New Orleans, 653 So. 2d 538 (La. 1995).
“JUST CAUSE Rosenbush argues that the Fourth Circuit's decision, holding that a bidding authority may reserve the right to reject all bids "without just cause," is contrary to the provisions of LSA-R.S. 38:2214 and to several cases decided by the First and Second Circuit Courts…”
State Mach. v. Iberville Council, 952 So. 2d 77 (La. Ct. App. 2006).
“The opening of such bids is governed by the provisions of LSA-R.S. 38:2214. LSA-R.S. 38:2212.1(J). A public entity may reject any and all bids for just cause.”
La. Rev. Stat. § 38:2214(B)(1): 1 case
La. Rev. Stat. § 38:2214(B)(5): 1 case
La. Rev. Stat. § 38:2214(C): 3 cases
State in Interest of AC, 643 So. 2d 719 (La. 1994).
“R.S. 38:2214(C) & La.R.S. 39:1594(F) (withdrawal of public contract bids for patent errors); La.”
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