Saturday, October 10, 2009

Court rules county had issued a request for a proposal, so there was no contract and no promissory estoppel claim by successful "bidder"

The St. Augustine Record, Saturday, October 10, 2009:
A St. Johns County judge has decided there was no breach of contract over management of the St. Augustine Amphitheatre because there was no contract.
Signature Entertainment, of Ponte Vedra Beach, thought it had a deal with the county, but, instead, was responding to a "request for proposal and not an invitation to bid," Circuit Judge J. Michael Traynor wrote in his Oct. 6 ruling.
"(T)he selection of (Signature Entertainment) was simply an agreement to negotiate a contract and not the forming of a contract between the parties."                                                              


  1. What is the difference between a request for proposal and invitation to bid? Are they essentially the same thing. I am having trouble distinguishing the two becuase I feel like with both your submitting a price to do the work that can be accepted or declined. The only difference I can think of from my past employment working for a large industrial roofing company is when we submitted bids they included a price for every single detail in a line item by line item way and a proposal was more broad with a not to exceed price.


  2. You're right -- there's no difference as far as we're concerned between a request for a proposal and an invitation to bid. The bottom line is this: neither one is an offer. And that's really what we care about: is it an offer? It really doesn't matter what it's called (an RFP, an elephant, an "offer," or an "agreement," if it functions as an offer it's an offer. If it doesn't, it isn't.