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Jay Township Authority v. Cummins

Judgment in favor of plaintiff reversed because plaintiff's failure to strictly comply with its bid instructions regarding the procedure for bid acceptance prevented it from being allowed to collect on defendant's bid bond, despite fact that plaintiff's failure was not the basis of defendant's refusal to execute the contract documents after being awarded the project.

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Argued: February 6, 2001

Robert Cummins (d/b/a Bob Cummins Construction Co.) and Mid-State Surety Corp. appeal from the order of the Court of Common Pleas of the 59th Judicial District (Elk County Branch), which awarded the Jay Township Authority (Authority) $10,760.00, the amount of Cummins’ bid bond. The issue presented for review is whether the Authority properly awarded a project contract to Cummins thereby entitling it to the bid security when Cummins subsequently failed to execute the contract documents.

The Authority solicited bids for a sludge dewatering system for its sewage treatment plant, requiring each submission to be accompanied by a bid bond in the amount of 10% of the bid price. Cummins submitted a bid for the project in the amount of $107,600.00, which was accompanied by the required bid security, naming Cummins as principal and Mid-State as surety. Cummins’ bid was opened on September 17, 1996, and it was the lowest bid received. On January 15, the Authority issued a Notice of Award to Cummins; the Notice was faxed and sent by certified mail on that same date. The facsimile transmission contained the notation that “certified copy to follow via mail.” In addition, on January 15, the Authority’s engineers separately mailed to Cummins for signature (via regular mail) three copies of the contract documents, including the Agreement (contract documents).

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