Case Study: Ron Engineering Vs. Ontario, Supreme Court Of Canada

Assignment 1

Ron engineering

Name: Yangjie Fu

Student NO: 040-706-645

Prof. name: ALLAN CUTLER

Date: 2-Oct-2014

Content

• Ron Engineering vs. Ontario, Supreme Court of Canada, (1981)

1. Complainant’s Position………………………2

2. Defendant’s Position…………………………2

3. The Ruling……………………………………3

4. Significance…………………………………..3

5. Impact………………………………………...3

6. Conclusion…………………………………....4

7. Bibliography………………………………….5

Ron Engineering is a leading case for the field of bidding and tendering in Canada. It impact on the whole law of bidding and tendering for 33 years since 1981. It is a procedure of bidding and tendering. The case describe that the Ontario issued a call for tenders for a new sewage and water treatment plant.

The owner had great risk in a call for tender (K&A, 2013). Especially, the eligible contractor is limited, and the owner need to spend time and resource to evaluate the bidder. On the other hand, when the owner has not the obligation to fulfill the commitment, the contractors will notice that their hard work, tender, just like a chip for owner to negotiate with others. Ron engineering has changed the situation of call for tender. The contract A is always formed with the submission of a valid tender. Also, the Mr. Justice Estey stated that the principal term of Contract A is the irrevocability of the bid. This is benefit of the contract A/B. In the other word, this procedure protects the both parties. Therefore, the Ron engineering likes a milestone for the law of bidding and tendering. People have constantly made the system

Some opponent always makes different voice. First, some of people believe, the rule of contract A/B is not flexible. The contract A/B just increases the burden to the owner and contractor. For owner side, they must face the risk with huge among liabilities. A call for tender must involve with many contractor. As the result, perhaps, some of also-ran will find some way to sue owner, because of disappoint. In deed, it happens after Ron case. The owner always is a defendant in some bidding lawsuit. As well as, for contractors’ side, when the mistake appears in the tender document, the owner can not give up to let the contractor withdraw their tenders. The owners always force the contractor to complete the contract. It always make contractor get serious loss. However, through the development of the contract A/B, the opponent’s saying is not very strong enough. In fact, nowadays, the owner always inspects the contractor in preparatory examination stage, and controls the number of the contractors. It can lower the risk for the owner. In addition, even if the mistake committed, this type of bidding helps to reduce the expensive price from the mistake. Conclusion All in all, the Ron engineering has been 33 years since 1981. The court of Canada has work on it, and improved it constantly. Now, it already is a stable structure for bidding and tendering. I believe it won’t change in the few decade years. When the problem comes out during the call