Non-compliance and Substantial Compliance of Tender Bids

One of the frequent issues that comes before courts in the tendering context is whether a tender bid is compliant with the tender documents. There are considerable legal implications arising from a determination that a bid is not compliant.

While in other business contractual relationships an irregularity in the contract documents may be reasonably ignored by the parties, in the tendering context irregularities have greater significance due to the unique legal framework of tendering. In order to uphold the fairness and integrity of the tendering process the law requires that only compliant bids be considered for award. In this article, we discuss the general principles that apply in a compliance assessment.