Construction company loses lawsuit over RNC building

Deana Stokes Sullivan
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A Newfoundland and Labrador Supreme Court justice has ruled that even though a Canadian construction company submitted the lowest bid for renovations at the Royal Newfoundland Constabulary’s headquarters building in St. John’s, its initial bid was ultimately non-compliant.

Justice James Adams has determined that the Department of Transportation and Works did the right thing in disqualifying Pomerleau’s bid, which was approximately $1.7 million less than Olympic Construction’s successful bid for almost $33 million.

After the contract was awarded in July 2010, Pomerleau sought clarification from government. It learned that the tender form it submitted was incomplete.

In his written decision rendered Tuesday, Adams said there was no discretion clause in the tender documents permitting government to accept an incomplete bid. Pomerleau filed a lawsuit against government for damages.

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Organizations: Pomerleau, Department of Transportation and Works

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