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Contracts Keyed to Fuller
Holman Erection Co. v. Orville E. Madsen & Sons, Inc.
Facts
A city solicited bids for the construction of a water treatment facility. Orville E. Madsen & Sons (Defendant) decided to bid on the general contract, so he solicited bids for the necessary steel erection. Holman Erection Co. (Plaintiff) prepared a bid and, in conformance with an industry practice designed to prevent bid-shopping, submitted its bid to Defendant by telephone shortly before the general bid was due. Defendant used Plaintiff’s bid in preparing its own bid for the general contract and, as the city required general contractors to list all potential subcontractors, listed Plaintiff as its subcontractor on its bid. Defendant was awarded the general contract and awarded the steel subcontract to Van Knight, partially on the basis that Van Knight was a minority business, and the general contract required that an effort be made to have a portion of the work done by minority businesses. Van Knight also agreed to provide substantial labor and materials that Plaintiff had not. When Plaintiff learned the subcontract had gone to Van Knight, Plaintiff sued Defendant, alleging that Defendant had accepted its bid and that in awarding the subcontract to another company had breached a binding contract. Plaintiff appealed from a grant of summary judgment to Defendant.
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