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</div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Concepts in Canadian contract law</div> <p>The terms <b>Contract A</b> and <b>Contract B</b> in <a href="/wiki/Canadian_contract_law" title="Canadian contract law">Canadian contract law</a> refer to a concept applied by the <a href="/wiki/Court_system_of_Canada" title="Court system of Canada">Canadian courts</a> regarding the fair and equal treatment of bidders in a <a href="/wiki/Contract_tendering_process" class="mw-redirect" title="Contract tendering process">contract tendering process</a>, for example to award a <a href="/wiki/Construction" title="Construction">construction</a> contract. Essentially this concept formalizes previously applied precedents and strengthens the protection afforded to those who submit bids in the tendering process. The concept was introduced in 1981 by the <a href="/wiki/Supreme_Court_of_Canada" title="Supreme Court of Canada">Supreme Court of Canada</a>, in <i><a href="/wiki/R._v._Ron_Engineering_and_Construction_(Eastern)_Ltd" class="mw-redirect" title="R. v. Ron Engineering and Construction (Eastern) Ltd">R. v. Ron Engineering and Construction (Eastern) Ltd</a></i>.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The court found that a "<a href="/w/index.php?title=Duty_of_fairness&action=edit&redlink=1" class="new" title="Duty of fairness (page does not exist)">duty of fairness</a>" was owed to all bidders by an owner in a tendering process. </p> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:Supreme_court_of_Canada_in_summer.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/f/fb/Supreme_court_of_Canada_in_summer.jpg/220px-Supreme_court_of_Canada_in_summer.jpg" decoding="async" width="220" height="130" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/fb/Supreme_court_of_Canada_in_summer.jpg/330px-Supreme_court_of_Canada_in_summer.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/fb/Supreme_court_of_Canada_in_summer.jpg/440px-Supreme_court_of_Canada_in_summer.jpg 2x" data-file-width="4000" data-file-height="2360" /></a><figcaption>Supreme Court of Canada building in <a href="/wiki/Ottawa" title="Ottawa">Ottawa</a></figcaption></figure> <p>A Contract A, a "process contract",<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> is formed between the owner (person, company or organization tendering the project) and each bidder when a "request for proposal" is responded to in the form of a compliant bid, sometimes also known as submission of price. The owner must deal fairly and equally with all bidders, and must not show any favouritism or <a href="/wiki/Prejudice" title="Prejudice">prejudice</a> towards any bidder(s). In essence, this concept boils down to the right of an individual to have equal opportunity to be successful with their bid for work. </p><p>A Contract B is formed when an owner formally accepts a bid or, colloquially, a submission of price. Only a single Contract B is formed between, the owner and the successful bidder. The term "Contract B" is used to differentiate the actual construction contract from the tender contract or "Contract A". Tied to the concept of "Contract A", Contract B is a place holder in the concept, a marker at the end of a formalized process of equitable treatment of both bidders and owners.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>A breach of Contract A may occur if the owner (or an owner's officer or representative, see <a href="/wiki/Vicarious_liability" title="Vicarious liability">vicarious liability</a>), provides information, changes specification during the tendering process to unfairly benefit a particular bidder, enters into closed negotiations with an individual bidder in an effort to obtain more desirable contract conditions, etc. The most common situation in which an owner is accused of having breached Contract A occurs when a bidder is selected who is not the lowest bidder. This contravenes established custom and practice, which would normally dictate that the lowest bidder be awarded the subsequent contract to perform the work, <a href="/wiki/Contract_B" class="mw-redirect" title="Contract B">Contract B</a>, but is not normally a source of a breach if handled properly. The successful suits for breach typically occur if the lowest bidder has been excluded based on a stipulation not clearly outlined in the tender documents (such as preference for local bidders) or when the <a href="/w/index.php?title=Privilege_Clause&action=edit&redlink=1" class="new" title="Privilege Clause (page does not exist)">Privilege Clause</a> employed by the owner to exclude a principle of custom and practice is judged by the courts to be too broadly worded to have any meaning. </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Contract_A_and_Contract_B_in_Canadian_contract_law&action=edit&section=1" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Call_for_bids" class="mw-redirect" title="Call for bids">Call for bids</a></li> <li><a href="/w/index.php?title=Duty_of_fairness&action=edit&redlink=1" class="new" title="Duty of fairness (page does not exist)">Duty of fairness</a></li> <li><a href="/wiki/Request_for_Proposal" class="mw-redirect" title="Request for Proposal">Request for Proposal</a></li> <li><a href="/wiki/Reverse_auction" title="Reverse auction">Reverse auction</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Contract_A_and_Contract_B_in_Canadian_contract_law&action=edit&section=2" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">Government Procurement, Fourth Edition, by Paul Emanuelli, p. 125, Published by Lexis Nexis Canada, Year of Publication: 2017, <style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-433-47454-8" title="Special:BookSources/978-0-433-47454-8">978-0-433-47454-8</a></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><a href="/wiki/Court_of_Appeal_for_British_Columbia" class="mw-redirect" title="Court of Appeal for British Columbia">Court of Appeal for British Columbia</a>, <a rel="nofollow" class="external text" href="https://www.bccourts.ca/jdb-txt/ca/07/05/2007bcca0592.htm#_ftn1">Tercon Contractors Ltd. v. British Columbia (Transportation and Highways)</a>, 2007 BCCA 592, footnote 1, published 3 December 2007, accessed 29 July 2021</span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">Paul Emanuelli, <i>Government Procurement</i>, Fourth Edition, p. 125, Published by Lexis Nexis Canada, Year of Publication: 2017, <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-433-47454-8" title="Special:BookSources/978-0-433-47454-8">978-0-433-47454-8</a></span> </li> </ol></div></div> <p><br /> </p> <style data-mw-deduplicate="TemplateStyles:r1012311289">.mw-parser-output .asbox{position:relative;overflow:hidden}.mw-parser-output .asbox table{background:transparent}.mw-parser-output .asbox p{margin:0}.mw-parser-output .asbox p+p{margin-top:0.25em}.mw-parser-output .asbox-body{font-style:italic}.mw-parser-output .asbox-note{font-size:smaller}.mw-parser-output .asbox .navbar{position:absolute;top:-0.75em;right:1em;display:none}</style><div role="note" class="metadata plainlinks asbox stub"><table role="presentation"><tbody><tr class="noresize"><td><span style="vertical-align:middle; background:transparent; color:inherit;"><span class="mw-image-border" typeof="mw:File"><a href="/wiki/File:Flag_of_Canada_(Pantone).svg" class="mw-file-description"><img alt="Flag of Canada" src="//upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Flag_of_Canada_%28Pantone%29.svg/30px-Flag_of_Canada_%28Pantone%29.svg.png" decoding="async" width="30" height="15" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Flag_of_Canada_%28Pantone%29.svg/45px-Flag_of_Canada_%28Pantone%29.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Flag_of_Canada_%28Pantone%29.svg/60px-Flag_of_Canada_%28Pantone%29.svg.png 2x" data-file-width="1200" data-file-height="600" /></a></span><span style="margin-left:-30px;"><span typeof="mw:File"><span><img alt="Justice icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Scale_of_justice_2.svg/29px-Scale_of_justice_2.svg.png" decoding="async" width="29" height="30" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Scale_of_justice_2.svg/44px-Scale_of_justice_2.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Scale_of_justice_2.svg/59px-Scale_of_justice_2.svg.png 2x" data-file-width="204" data-file-height="208" /></span></span></span></span></td><td><p class="asbox-body">This article about <a href="/wiki/Canadian_law" class="mw-redirect" title="Canadian law">Canadian law</a> is a <a href="/wiki/Wikipedia:Stub" title="Wikipedia:Stub">stub</a>. 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