Contracts & ExecutionQuestion 170 of 1605
When a general contractor relies on a subcontractor's bid to prepare its prime bid, the sub generally:
a.May freely withdraw the bid for any reason after the prime is awarded
b.May be bound to honor that bid under the doctrine of detrimental reliance
c.Must be paid a deposit before submitting the bid
d.Automatically becomes a partner of the general contractor
Explanation
When a general reasonably and foreseeably relies on a sub's bid in submitting its own, the sub can be held to that bid under promissory estoppel (detrimental reliance), even without a signed contract.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)