SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-2236-94T5
COLONNELLI BROS., INC., a New
Jersey Corporation,
Plaintiff-Respondent,
v.
VILLAGE OF RIDGEFIELD PARK, a
body corporate and politic of
the State of New Jersey,
Defendant-Appellant,
and
MONTANA CONSTRUCTION CO.,
Defendant.
_________________________________________________________________
Argued September 20, 1995 - Decided October 20, 1995
Before Judges Shebell, Stern and Wallace.
On appeal from the Superior Court of New
Jersey, Law Division, Bergen County.
Phillip N. Boggia argued the cause for
appellant Village of Ridgefield Park
(Durkin & Boggia, attorneys; Mr. Boggia
and Martin T. Durkin on the brief and
reply brief).
Thomas S. Cosma argued the cause for
respondent (Connell, Foley & Geiser,
attorneys; Mr. Cosma of counsel and on
the brief).
The opinion of the court was delivered by
STERN, J.A.D.
Defendant Village of Ridgefield Park appeals from a judgment
of the Law Division entered on December 9, 1994 declaring
plaintiff the low bidder and awarding a contract to it. We
reverse.
The Village declared defendant Montana Construction Company
the lowest responsible bidder on the contract for installation of
a "storm drainage bypass system." Montana submitted a bid of
$363,255.00. Plaintiff had also submitted a bid.
The bidding contractors were instructed to submit bids for
forty-one separate items of work. Each item was to contain a
"unit price" and a "computed total." The "unit price" was to be
expressed in both words and numbers. The unit price times the
number of units which the municipality estimated as necessary to
complete that item of work constituted the "computed total."
(For example, as ten cubic yards of concrete were deemed
necessary for item thirty-two, the "computed total" for that item
was to be listed as ten times the amount bid for each cubic
yard.)
One of the items was for "Maintenance of Traffic" during the
construction. With respect to that item, the plaintiff's written
bid was "one hundred dollars no cents" but the numerical amount
was noted as "$10,000.00." The $10,000 numeral figure was also
used for the "computed total" for that item. Plaintiff's
aggregate bid of $369,384.00, listed both "in words and figures,"
was based on the sum of "computed totals" for all items.
Considering plaintiff's aggregate bid of $369,384.00, the
municipality awarded the contract to Montana, the lowest
responsible bidder at $363,255.00. However, on plaintiff's
complaint in lieu of prerogative writ the trial court entered
judgment for plaintiff and awarded the contract to it.
Paragraph 8 of the bid advertisement, entitled "Errors in
Bid," provided that:
In the event there is a discrepancy between
the unit prices and the extended totals, the
unit prices shall prevail. In case there is
an error in the summation of the extended
totals, the extended totals shall govern and
the computed summations by the Engineer shall
be accepted as the bid amount.
In the event there is a discrepancy
between the unit prices written in numbers
and the item unit bid prices written in words
shall govern.
The municipality argues that its decision to award the
contract to Montana was not arbitrary or capricious. It asserts
the right to refuse plaintiff's explanation and request to change
its aggregate bid to be consistent with the $100 figure,
notwithstanding the above-quoted paragraph 8 concerning errors in
bids.
In a certification before the trial court, Steven T.
Boswell, the Township Engineer, stated that he "estimated" the
component for "Maintenance of Traffic" during construction would
be about $5,000, and that the other bids received therefor ranged
from $2,000 to $15,000. He concluded that a $100 bid was not a
"responsible expenditure to cover this phase of the work."
The judge found the low bid for the item was irrelevant in
an "unbalanced" bid because of the absence of fraud or collusion,
and that under paragraph 8 of the bid specifications, plaintiff
was the lowest responsible bidder. Judgment was accordingly
entered for plaintiff, but the award was stayed pending this
appeal.
"[B]idding statutes are for the benefit of the taxpayers and
are construed as nearly as possible with sole reference to the
public good. ... There is a prima facie presumption that the
power and discretion of governmental action has been properly
exercised." Miller v. Passaic Valley Water Comm'n,
259 N.J.
Super. 1, 14 (App. Div.), certif. denied,
130 N.J. 601 (1992)
(citations omitted). For that reason, "[t]he trial court may not
in the exercise of its judicial function substitute its judgment
for that of the governmental body being challenged." Id. at 15.
We conclude that the trial judge improperly interfered with the
Village Board of Commissioner's appropriate exercise of
discretion in awarding the contract to Montana, and therefore
reverse the judgment of the Law Division.
In Carney, Inc. v. City of Trenton,
235 N.J. Super. 372, 374
(App. Div. 1988), we addressed whether a local contracting unit
can waive a condition of the bid proposal which provides that the
bid price in written terms shall prevail over the bid price
expressed numerically. The low bidder, Fitzpatrick & Associates,
submitted a bid for construction on a water works project in
written terms of $4,000,995 and in numerical figures of
$4,995,000. Id. at 375. Fitzpatrick's bid, even at the high
number, was lower than the next closest bid which was filed by
the plaintiff. Ibid. We concluded that the city "did not abuse
its discretion in waiving the condition that the written bid
price would supersede the numerical bid price" where no harm
would come to the city or its taxpayers, it was obvious that a
simple error was made, and the Water Works Superintendent and the
Project Architect believed that the project could not be
constructed for the written bid price. Id. at 381. See also
Public Contractors, Inc. v. New Jersey Expressway Authority,
43 N.J. 545, 548 (1965) (holding that the comparison-of-bids
specification could be disregarded by the awarding entity where
the error was "grotesquely exorbitant"). Compare Cardell, Inc.
v. Township of Madison,
105 N.J. Super. 594, 596-97 (Law Div.),
aff'd o.b.,
105 N.J. Super. 604, 605 (App. Div.) (Labreque,
J.A.D. dissenting), rev'd on dissent,
54 N.J. 151 (1969) (errors
with respect to two unit prices, similarly stated in both words
and numbers, corrected to conform with the respective computed
total for that item, and total bid reduced, where the sum of the
computed totals did not equal the "total bid price for all
items.") Here, unlike in Cardell, the "computed total" was
consistent with the "unit price" expressed in figures and the sum
of the "computed totals" equalled the total bid price.
The record adequately supports the Village's decision to
treat the sum of plaintiff's "computed totals," $369,384.00
expressed both in writing and numbers, as plaintiff's aggregate
bid. This amount was higher than Montana's total bid. If we
accept plaintiff's endeavor to select the correct "unit price"
for the "maintenance of traffic" item, amend the "computed total"
therefor to $100.00 and amend the sum of the computed totals to
$359,484.00, then the taxpayers would pay less if the bid is
awarded to plaintiff. We also acknowledge that in Carney the
waiver of the requirement that the written bid would control
affected only the total bid and did not change the lowest
responsible bidder. Nevertheless, consistent with Carney, the
Village could in these circumstances disregard the comparison-of-bids formula in paragraph 8, and conclude that Montana was the
lowest responsible bidder.
We agree with the Village that there would be room for
manipulation and fraud if, after the bids were rendered, a bidder
could clarify its bid or express which figure it intended to use,
depending on the other bids presented. See Meadowbrook Carting
Co. v. Island Park Borough,
138 N.J. 307, 313-15 (1994); Hillside
Twp. v. Sternin,
25 N.J. 317, 322-23 (1957); Statewide Hi-Way v.
Dep't of Transportation,
283 N.J. Super. 223 (App. Div. 1995).
As the Township Engineer certified before the Law Division:
If a contractor was allowed to revise
his bid where a lump sum bid was called for,
it would lead to a situation where a person
could submit two prices for a lump sum item
and they would have a built-in float in their
bid, depending on which price was used. This
could lead to irresponsible prices being
submitted for the same item, which would
favor bidders who failed to follow a careful
analysis in preparing their bids. It would
lead to a situation which would undermine the
policy of the Local Public Contracts Law,
i.e. the most responsible bidder at the
lowest price.
The judgment of the Law Division is reversed.