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Low Bid Does Not Always Get the Award: Bidder Preference Laws - Webinar (Recorded)

  • Webinar

  • 65 Minutes
  • November 2024
  • Lorman Business Center, Inc.
  • ID: 6006379

Gain an understanding of bidder preference laws necessary to navigate the evolving world of public works bidding.

The public policy of awarding a public works contract to the lowest, responsible, and responsive bidder is to provide a level playing field for all qualified contractors, to promote competition, to conserve public funds, and to avoid corruption. Other standards of award have similar public policies. Despite these public policies, meeting the standard of award may not be enough to win the award of a public works contract due to the widespread enactment of bidder preference laws.

Bidder preference laws give certain classes of bidders a competitive advantage over other classes of bidders for reasons not tied to the performance of the contract being bid. The federal government, almost every state government, and many local governments have enacted a large number of bidder preference laws to promote non-performance-based causes that often appeal to voters.

Bidder preference laws are by nature discriminatory. They favor one or more classes of bidders over other classes of bidders for non-performance-based reasons. In addition, some local governments have exceeded their statutory authority in enacting bidder preference laws. As a result, bidder preference laws are subject to constitutional and statutory limitations that may result in legal challenges. Understanding the conflicting public policies behind standards of award and bidder preference laws and the limitations imposed by law could affect the awards of billions of dollars of public works projects annually and the rights of those who bid such projects.

This material will provide you with knowledge of the conflicting policies behind standards of award and bidder preference laws, the different types of bidder preference laws, and the legality of bidder preference laws. This information is critical to anyone whose rights may be affected by bidder preference laws.

Learning Objectives

  • You will be able to describe what makes a particular law a bidder preference law.
  • You will be able to identify different types of bidder preference statutes.
  • You will be able to recognize when a bidder preference law has exceeded the constitutional and statutory authority.
  • You will be able to review the legal issues relating to bidder preference statutes.

Agenda

Introduction
  • What Is a Preference Law?
  • Public Policies of Preference Laws
  • Preferences in Private Contracting
  • Preferences in Public Contracting
Standards of Award
  • In General
  • Most Qualified Bidder With Reasonable Price
  • Lowest, Responsible, Responsive Bidder
  • Most Advantageous to Public
  • Public Policies of Standards of Award
  • Exceptions
Types of Preferences
  • Employment
  • Procurement
  • Bidder Status
Types of Preference Laws
  • Absolute
  • Allowance
  • First of Refusal
  • Tiebreaker
  • Reciprocal
  • Hybrid
Limitations on Bidder Preference Laws
  • Constitutional Limitations
  • Statutory Limitations
  • Policy Limitations
Conclusion
  • Questions and Answers

Speakers

  • Scott D. Cahalan
  • Scott D. Cahalan,
    Smith, Gambrell & Russell, LLP


    • Partner in the construction law section of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm
    • Adjunct professor of design and construction law at Georgia Institute of Technology
    • General counsel to the Georgia Utility Contractor’s Association
    • Practice includes all aspects of design and construction law from drafting and negotiating prime contracts, subcontracts, and purchase orders to mediating, arbitrating, and litigating construction disputes
    • Drafted form construction contracts for the Associated Owners and Developers, a national organization
    • Recognized by Chambers USA and Georgia Super Lawyers
    • Frequent author and lecturer on construction law
    • Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
    • J.D. degree, with honors, University of Georgia; B.S. degree in construction engineering, Iowa State University
    • Can be contacted at 404-815-3711, scahalan@sgrlaw.com, or scott.cahalan@gatech.edu

Who Should Attend

This live webinar is designed for engineers, city administrators, county and municipal officers, presidents, vice presidents, public works and utility directors, developers, project managers, planners, contractors, subcontractors, architects, and attorneys.