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Submitting a construction bid in Florida can be a high-stakes process. Whether you’re bidding on a public works project or a private development, a bid represents a legal commitment — not just a price proposal. Contractors who later decide to withdraw face strict rules and potential financial consequences. This blog explores when and how a construction bid can be withdrawn and how to protect your business from disputes.
When a Construction Bid Becomes Legally Binding
In Florida, a bid is more than an estimate once it’s formally submitted in response to a solicitation. A valid bid typically creates a binding offer that the project owner may accept, forming a contract. Once accepted, withdrawing may be treated as a breach, exposing the contractor to damages or bond forfeiture.
The key factor is acceptance:
- Before acceptance, a contractor may have a limited ability to withdraw under specific conditions.
- After acceptance, withdrawal is generally prohibited unless there was a legal defect, such as fraud, mistake, or misrepresentation.
Public projects, in particular, are governed by Florida statutes and procurement regulations that strictly control when a bid can be retracted.
Common Reasons Contractors Seek to Withdraw a Bid
Even experienced contractors encounter situations that prompt reconsideration. Some of the most common reasons include:
- Clerical or mathematical errors in bid calculations.
- Unexpected material or labor cost increases between submission and award.
- Misinterpretation of project specifications or scope.
- Discovery of hidden site conditions not reflected in the bid documents.
- Administrative errors, such as bidding under the wrong entity name.
While these situations may seem understandable, Florida law provides only narrow exceptions that allow withdrawal without penalty.
Withdrawal Rules for Public Construction Bids
Public bidding for city, county, and state contracts follows strict statutory procedures. Under Florida Statutes Section 255.20, a bidder may withdraw a bid only before the bid opening or after opening if certain conditions are met, such as:
- The withdrawal request is made promptly upon discovery of an error, typically within 48 hours.
- The error was clerical, not judgmental or due to negligence.
- The bidder provides documentary evidence proving the mistake (e.g., worksheets or cost estimates).
If approved, the bid is withdrawn without forfeiting the bid bond or facing disciplinary action. However, the bidder may be disqualified from rebidding on the same project.
If the public agency denies the request, the bidder must either honor the bid or risk forfeiting the bid bond, which can be up to 5% of the total bid amount.
Private Construction Projects: Contractual and Equitable Principles
In private construction projects, withdrawal rights depend largely on the bid solicitation terms and general contract law. If the bid documents specify that the proposal is irrevocable for a set period, withdrawing early may constitute a breach.
However, courts may grant relief under certain equitable doctrines, such as:
- Unilateral mistake–When one party made a significant clerical or arithmetic error, and enforcing the bid would be unconscionable.
- Lack of acceptance–If the owner hasn’t yet formally accepted the bid, withdrawal may still be possible.
- Mutual mistake or misrepresentation–If both parties operated under a shared misunderstanding or misleading information.
Contractors should act swiftly if they discover an error and consult counsel before communicating with the project owner to preserve any legal defenses.
Consequences of Improper Withdrawal
Attempting to withdraw a bid without legal grounds can lead to:
- Forfeiture of the bid bond or deposit.
- Loss of future bidding privileges with public agencies.
- Civil liability for costs incurred by the project owner due to the withdrawal.
- Damage to professional reputation, which can affect licensing or bonding capacity.
For these reasons, contractors should verify every detail before submission and understand the risks of early withdrawal.
How to Protect Your Company During the Bidding Process
To minimize the likelihood of disputes or costly mistakes, Florida contractors should:
- Review bid documents carefully and clarify ambiguities before submission.
- Double-check calculations, subcontractor quotes, and material costs.
- Maintain detailed backup documentation for every bid.
- Use internal review procedures or third-party estimators for verification.
- Include language in proposals limiting bid validity or allowing withdrawal for specified reasons.
- Seek legal review for significant public bids or complex project structures.
Taking these steps can prevent errors that might otherwise justify withdrawal and help demonstrate good faith if a problem arises later.
When to Contact a Construction Law Attorney
Because the rules governing bid withdrawal are technical and time-sensitive, consulting a Florida construction attorney early is crucial. An attorney can:
- Evaluate whether a mistake qualifies for lawful withdrawal.
- Prepare a compliant withdrawal request with supporting evidence.
- Negotiate with contracting agencies to preserve your company’s eligibility for future bids.
- Represent your interests if a dispute escalates to litigation or arbitration.
At Boatman Ricci, our attorneys help contractors, developers, and business owners across Florida handle bid disputes and contract issues efficiently. We focus on resolving problems before they escalate—protecting your financial interests and your reputation in the industry.
Protect Your Business and Your Reputation
Withdrawing a construction bid in Florida isn’t a decision to take lightly. The right legal approach can make the difference between a manageable correction and a costly legal battle.
Contact Boatman Ricci today to discuss your options with our experienced construction law attorneys. We’ll help you understand your rights, assess potential liabilities, and develop a solution that keeps your business on solid ground.