Disappointed Bidder on Public Works Project May Recover Bid Preparation Costs Under Certain Conditions

The Supreme Court of Ohio ruled today that when a rejected bidder establishes that a public authority violated state competitive-bidding laws in awarding a public-improvement contract, that bidder may recover reasonable bid-preparation costs as damages if the bidder promptly sought, but was denied, an injunction to suspend work on the project pending resolution of the bid dispute, and it is later determined that the bidder was wrongfully rejected and injunctive relief is no longer available.

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