C & D Contractors, Inc. v. Delaware Technical & Community College

318 A.2d 142, 1974 Del. Ch. LEXIS 90
CourtCourt of Chancery of Delaware
DecidedMarch 28, 1974
StatusPublished
Cited by1 cases

This text of 318 A.2d 142 (C & D Contractors, Inc. v. Delaware Technical & Community College) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C & D Contractors, Inc. v. Delaware Technical & Community College, 318 A.2d 142, 1974 Del. Ch. LEXIS 90 (Del. Ct. App. 1974).

Opinion

BROWN, Vice Chancellor.

Plaintiff, C & D Contractors, Inc., is engaged in the business of mechanical contracting and construction, and has brought this action against the Defendant, Delaware Technical and Community College, a State agency, and its board of trustees (hereinafter referred to collectively as “Del Tech”) to permanently enjoin Del Tech from awarding certain mechanical construction work on its Kent County campus, as designated in bid specifications put out during October 1973, to anyone other than the Plaintiff. A preliminary injunction was previously issued in favor of Plaintiff. This is a decision after final hearing.

At the heart of the • controversy is the question of whether or not a State agency, under the prevailing bidding statutes as found in 29 Del.C. Ch. 69, can legally require mechanical contractors bidding on a project to submit as part of their respective bids certain design plans and specifications for a portion of the mechanical work to be performed and make the submission of such plans and specifications along with and at the time of their bids a prerequisite to the validity of the bids.

One statute applicable to this issue is 29 Del.C. § 6905(b) which provides as follows:

“When an agency proposes to contract for any work to be done and the probable cost of such contract exceeds $10,000, the agency shall prepare suitable plans and specifications for such work, and shall prescribe such other terms and conditions as it deems necessary.” (Emphasis added)

The other is 29 Del.C. § 6908 which provides, in pertinent part, as follows:

“The bids shall be publicly opened at the time and place specified and the contract shall be awarded within 30 days thereafter by the agency ... in accordance with regulations prescribed by the agency, to the lowest responsible vendor unless, in the opinion of the agency or its delegated representative, the interest of the State shall be better served by the awarding of the contract to some other vendor, which may then be done, provided the agency shall set down in its minutes the reason or reasons for granting the contract to the person other than the lowest responsible vendor, and clearly describing how the interest of the State shall be better served by awarding the contract to other than the lowest vendor.”

Also to be considered is the following requirement contained in the bidding specifications made available to prospective bidding contractors:

“a. Submittals with Bid: Refer to Proposal Forms.
(1) Single line ductwork and diffuser layout showing duct sizes, sound treatment, insulation, variable volume boxes, and diffusers by size and model number. Ductwork shall be sized by the static regain method. A copy of the calculations shall be submitted with the proposal.
(2) Single line piping showing sizes and all auxiliaries by size and model number.
[144]*144(3) Boiler Room layout.
(4) Refrigeration Room layout.
(5) Penthouse layout.
(6) Required submittals in addition to shop drawings are: Del Tech — Kent Campus Exhaust fans, grilles, and registers for non-systems ceilings, insulation, and other items or equipment specified herein or shown on drawings.”

Only the Plaintiff and two others submitted bids and Plaintiff’s bid of $390,000 was low by a margin of $24,212. Plaintiff admittedly is technically competent, financially responsible and organizationally capable of performing the work. However, Plaintiff purposely submitted no design plans and specifications as called for by the bidding requirements, although it did offer to submit these documents prior to the expiration of the 30 day period during which the contract was to be awarded.

Del Tech has chosen to handle this project under the construction management concept. Under this approach there is no general contract and the entire job is not awarded by means of a single bid. Rather Del Tech employs a construction manager which, acting in concert with the architect and engineer employed by the agency, supervises and manages the sequence of construction. Under this process, individual contracts are offered for bid and awarded directly to those who will do the work as the construction progresses. This permits certain phases of construction to commence while plans and preparations for later phases are still on the drawing board and, according to Del Tech, enables construction to be completed much faster arid with less expense than was possible'under the traditional proceeding of designing the entire project in advance and awarding a single contract to one general contractor who would then be responsible for the performance of much of the work through various subcontractors. In short, and perhaps overly simplified, construction management permits the owner to deal directly with those who would probably have been subcontractors under the traditional approach and to do so as their services become necessary.

After the bids were opened in this matter, it was the recommendation of the construction manager that the contract be awarded to the second lowest bidder due to a determination that the low bid of Plaintiff, unaccompanied by the required design plans, was incomplete and therefore not acceptable. Pursuant to 29 Del.C. § 6908 the 30 day period within which the contract was required to be awarded would have expired on December 28, 1973. As the result of a snowstorm, the December monthly meeting of Del Tech’s trustees was cancelled, but the individual members of the board were canvassed by a representative of the construction management team and a majority of them agreed to the aforesaid recommendation. The next lowest bidder, which did submit the required design drawings, was notified that it would be awarded the contract.

By letter dated January 9, 1974, Plaintiff was advised that the contract had been awarded to the second lowest bidder. On January 15, 1974, Del Tech’s board of trustees met and, among other things, adopted the following resolution:

“Be it resolved that Contract # 14 is awarded to I. D. Griffith, Inc., the second low bidder for the sum of $414,212.-00. This award is made in view of the fact that the apparent low bidder, C & D Contractors, Inc., submitted a proposal that was incomplete and did not meet specifications as outlined in Bid Pac-B Technical Specifications, Construction of Phase I, Kent Campus.
“This action is deemed to be in the best interest of the State of Delaware.”

Plaintiff attacks these circumstances from two separate angles, one substantive and the other procedural. First it contends that the present law pertaining to public works contracts does not permit a State [145]*145agency to require that design work be supplied by a contractor as a condition to having its bid considered. It argues that this is an impermissible attempt by Del Tech to delegate part of its responsibility to prepare adequate plans and specifications under 29 Del.C. § 6905(b) to those who are not quálified to do it. It also argues that such a requirement is discriminatory against the smaller contractors who do not have mechanical engineers on their staffs and who cannot afford the substantial cost of hiring an engineer to do the design work on the chance that they will be awarded the contract.

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Related

Delaware Technical & Community College v. C & D Contractors, Inc.
338 A.2d 568 (Supreme Court of Delaware, 1975)

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Bluebook (online)
318 A.2d 142, 1974 Del. Ch. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-d-contractors-inc-v-delaware-technical-community-college-delch-1974.