Bildit Construction Co

Essay

Bildit Construction Co.was building a large condominium complex in two phases.Phase 1 was to commence immediately and construction of Phase 2 would get underway once a minimum of 50 percent of the Phase 1 units had been presold.Bildit had asked for bids for certain aspects of the construction project.Peters had bid on the stucco work and Kelvin on the drywall.Both bids were accepted by Bildit and the respective contracts awarded.Moreover,Bildit used the bids to prepare its budgeting for the project and to acquire its financing.
Shortly after commencement of Phase 1,Peters ran into financial difficulties and was forced to withdraw from the project.Bildit then approached Kelvin with a request for a bid on the work that Peters could no longer complete.Bildit emphasised the urgency to move on with Phase 1,which was falling behind schedule,and requested Kelvin's bid as quickly as possible.Kelvin believed from the conversations it had with various representatives of Bildit that it was to quote only on Phase 1.Bildit accepted Kelvin's bid as it was very close to the prior bid of Peters.
Sometime later it became apparent that Bildit expected Kelvin to do all of the stucco work on both phases of the project for the bid price.The president of Kelvin contacted the president of Peters to inquire what Peters had understood the bid terms to be.Peters's president replied that he had been unclear at the time just what he was bidding on but that he had submitted a bid for one phase only.In fact,he mentioned to Kelvin's president that if Bildit had taken even a brief look at his bid,it would have realized that the bid would have been substantially below cost if it were for both phases.After this conversation,Kelvin undertook the further work on Phase 2 but insisted on additional payment.
Bildit contended that the bid was to be for both phases,and brought legal action for breach of contract against Kelvin.Kelvin countered with a claim for the money owing for Phase 2.Discuss the legal issues that arise as a result of these facts and the principles of law each party will rely on.