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Contracts Keyed to Fuller
Preload Technology, Inc. v. A.B. & J. Construction Company, Inc.
Citation:
696 F.2d 1080 (1983)Facts
In March 1979, Preload Technology was preparing to bid on the construction of a water storage reservoir for the City of Grand Prairie, Texas. A.B. & J.’s president, A.B. Cadenhead, met with Jack Hornstein, vice president of Preload Technology, to discuss the subcontract work. Cadenhead provided an oral estimate, and Hornstein informed him it was the lowest bid received. The next morning, Cadenhead called with a revised bid that was $30,000 higher, but was still informed he was the low bidder. Hornstein requested written confirmation before Preload’s bid submission deadline, which Cadenhead provided. Preload incorporated A.B. & J.’s bid into its final bid to the city and was awarded the contract on April 4, 1979. That same day, Cadenhead was informed that A.B. & J. would be the subcontractor. However, on April 17, A.B. & J. sent a letter refusing to perform the work. Preload then hired United Contracting Company to perform the work for $605,000, which was $155,056 higher than A.B. & J.’s bid.
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