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Low Bid Does Not Always Get the Award: Bidder Preference Laws

Gain an understanding of bidder preference laws necessary to navigate the evolving world of public works bidding.

The public policy of awarding a public works contract to the lowest, responsible, and responsive bidder is to provide a level playing field for all qualified contractors, to promote competition, to conserve public funds, and to avoid corruption. Other standards of award have similar public policies. Despite these public policies, meeting the standard of award may not be enough to win the award of a public works contract due to the widespread enactment of bidder preference laws. Bidder preference laws give certain classes of bidders a competitive advantage over other classes of bidders for reasons not tied to performance of the contract being bid. The federal government, almost every state government, and many local governments have enacted a large number of bidder preference laws to promote non-performance-based causes that often appeal to voters. Bidder preference laws are by nature discriminatory. They favor one or more classes of bidders over other classes of bidders for non-performance-based reasons. In addition, some local governments have exceeded their statutory authority in enacting bidder preference laws. As a result, bidder preference laws are subject to constitutional and statutory limitations that may result in legal challenges. Understanding the conflicting public policies behind standards of award and bidder preference laws and the limitations imposed by law could affect the awards of billions of dollars of public works projects annually and the rights of those who bid such projects. This material will provide you with knowledge of the conflicting policies behind standards of award and bidder preference laws, the different types of bidder preference laws, and the legality of bidder preference laws. This information is critical to anyone whose rights may be affected by bidder preference laws.

Learning Objectives

  • You will be able to describe what makes a particular law a bidder preference law.
  • You will be able to identify different types of bidder preference statutes.
  • You will be able to recognize when a bidder preference law has exceeded the constitutional and statutory authority.
  • You will be able to review the legal issues relating to bidder preference statutes.

88 minutes
Course Exam
Certificate of Completion
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Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Introduction

  • What Is a Preference Law?
  • Public Policies of Preference Laws
  • Preferences in Private Contracting
  • Preferences in Public Contracting

Standards of Award

  • In General
  • Most Qualified Bidder With Reasonable Price
  • Lowest, Responsible, Responsive Bidder
  • Most Advantageous to Public
  • Public Policies of Standards of Award
  • Exceptions

Types of Preferences

  • Employment
  • Procurement
  • Bidder Status

Types of Preference Laws

  • Absolute
  • Allowance
  • First of Refusal
  • Tiebreaker
  • Reciprocal
  • Hybrid

Limitations on Bidder Preference Laws

  • Constitutional Limitations
  • Statutory Limitations
  • Policy Limitations

Conclusion

  • Questions and Answers
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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

Applications have not yet been submitted for Delaware, Idaho, Kentucky, Maine, New Hampshire, Ohio, Oklahoma, South Carolina, and Wyoming CLE for this course. However, if you are interested in obtaining CLE for any of the listed states or have any additional credit questions please email us at [email protected] or call us at 866-352-9540.

This course was last revised on April 8, 2021.

Call 1-866-352-9540 for further credit information.

  • CA MCLE 1.5
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Scott D. Cahalan

Scott D. Cahalan

Smith, Gambrell & Russell, LLP

  • Partner in the construction law section of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm.
  • Part-time instructor of Construction and Development Law at the Georgia Institute of Technology
  • General counsel to the Georgia Utility Contractor’s Association
  • Worked for an ENR® top 50 general contractor
  • Drafted form construction contracts for the Associated Owners and Developers, a national association
  • Recognized by Chambers USA, The Best Lawyers in America, and Georgia Super Lawyers
  • Frequent author and lecturer on construction law
  • Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
  • J.D., cum laude, from University of Georgia; B.S. in construction engineering from Iowa State University
  • Contact information [email protected], [email protected], and (404) 815-3711
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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

All of your training, right here at Lorman

All of your training, right here at Lorman.

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Product ID: 408336
Published 2021
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