George & Lynch, Inc. v. Division of Parks & Recreation

465 A.2d 345
CourtSupreme Court of Delaware
DecidedJuly 7, 1983
StatusPublished
Cited by6 cases

This text of 465 A.2d 345 (George & Lynch, Inc. v. Division of Parks & Recreation) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George & Lynch, Inc. v. Division of Parks & Recreation, 465 A.2d 345 (Del. 1983).

Opinion

CHRISTIE, Justice:

This is an appeal from a decision of the Court of Chancery denying the motion of George & Lynch, Inc. for an injunction against the award of a public works contract by the Delaware Department of Natural Resources and Environmental Control. 1 George & Lynch had submitted the low bid on the project, but the Department indicated that it intended to award the contract to a higher bidder on account of alleged defects in the George & Lynch bid. The Court of Chancery refused to enjoin the award of the contract, and George & Lynch appealed to this Court.

The Department solicited bids, by advertisement in local newspapers in February 1983, for a project to improve certain public sewage treatment facilities. The date for the submission of bids was set for March 10, 1983, and the date for a prebid meeting of interested bidders was set for March 2, 1983. The bid documents specified that all bids must include a list of subcontractors for each named work specialty. The project included construction of new structures to house pumps, equipment, and an office.

George & Lynch, a Delaware contractor, did not attend the prebid meeting, but it did submit the low bid of $1,413,489.75. The second low bid was $41,448.25 higher. In its bid, George & Lynch wrote “none” in the space provided to list the electrical subcontractor, thus indicating that it did not intend to subcontract the electrical work but would perform that job itself. George & Lynch admits that this was incorrect, and that it never intended to do the electrical work itself. In fact, it was still negotiating with electrical subcontractors at the time its bid was submitted. After the bids were submitted and opened, another bidder lodged a protest with the Department alleging that George & Lynch’s bid did not conform to the provisions of 29 Del.C. § 6911(1) since George & Lynch was not licensed to do electrical work.

The statutory provisions pertinent to this appeal are found in Chapter 69 of Title 29 of the Delaware Code. That chapter governs the award of contracts for public improvements. The provisions of 29 Del.C. § 6907 require that such contracts must be awarded to the responsible vendor who submits the lowest bid. 2 Section 6911, pertain *347 ing to any public works contract for the construction, alteration, or repair of any public building, states as follows:

(1) Such contract shall be awarded only to a bidder whose bid is accompanied by a statement containing, for each subcontractor category set forth in the “listing” as provided in § 6904(b) of this title, the name and address (city or town and state only — street number and p.o. box addresses not required) of the subcontractor whose services he intends to use in performing the work or in performing the work and providing the material for such subcontractor category. No bidder for such a contract shall list himself in any accompanying statement as the subcontractor of any part of the public building unless the bidder, in addition to being licensed as a contractor of the State, shall also be recognized in the industry not only as a prime contractor but also as a subcontractor or contractor in and for any such part or parts of such work so listed in such accompanying statement.
(2) Neither the State nor county nor public school district nor any political subdivision of the State, nor any agency of any of them, shall accept any bid for such a contract or award any such contract to any bidder, as the prime contractor, if the bidder has listed himself as the subcontractor for any subcontractor category set forth on the “listing” as provided in § 6904(b) of this title, unless it has been established to the satisfaction of the awarding agency that the bidder has customarily performed the specialty work of such subcontractor category by artisans regularly employed by the bidder in his organization, that the bidder is duly licensed by the State to engage in such specialty work, if the State requires such licenses, and that the bidder is recognized in the industry as a bona fide subcontractor or contractor in such specialty work and subcontractor category. Illustrative only (and not intended to be exhaustive) of typical subcontractor categories involving their own respective types of specialty work are plumbing, electrical wiring, heating, roofing, insulating, weather stripping, masonry, bricklaying and plastering. The decision of the awarding agency as to whether a bidder who lists himself as the subcontractor for a subcontractor category set forth in the “listing” as provided in § 6904(b) of this title for such subcontractor category shall be final and binding upon all bidders, and no action of any nature shall lie against any awarding agency because of its decision in this regard.

This section requires that subcontractors for specialty work on public building contracts be named in the bid papers if the general contractor is not going to perform that work, and such listings are conditions precedent to acceptance of a bid by a State agency.

The terms “public works” and “public buildings” are statutorily defined in 29 Del.C. § 6901:

(3)“Public works contract” means any contract for the construction, reconstruction, alteration or repair of any public building, road, street, highway or other public improvement, the cost of which will be paid with public funds.
*348 (6) “Public building” means any edifice, structure or building which is, or is to be, constructed, reconstructed, altered or repaired pursuant to a “public works contract” ....

It is apparent then that a “public building” contract is a specific type of “public works” contract. However, only a public building contract is subject to the provisions of 29 Del.C. § 6911.

When a state agency proposes to enter a public building contract which exceeds $10,-000.00, § 6904(b)(2) provides. 3

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Cite This Page — Counsel Stack

Bluebook (online)
465 A.2d 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-lynch-inc-v-division-of-parks-recreation-del-1983.