Skb Industries, Inc. v. Insit

551 S.E. 2d 380 (2001)

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Nature of the Case

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Facts

Beers, a general contractor, was accepting bids for work to build Georgia International Plaza for the 1996 Olympic Games. Insite (P) wanted to submit a bid, and it got a bid from SKB (D), a landscaping subcontractor to do the landscaping work for $1,085,222.50. Insite used this bid in its bid to Beers to do the entire project for $3,161.411. Insite’s bid was significantly lower than the next lowest bid and Beers had reason to suspect that the landscaping portion was not based on the materials specified in the contract. SKB learned of this concern and reaffirmed its bid was based on the materials contained in the project specifications. However, SKB subsequently informed Insite that is bid was not based on required materials. SKB then sent a revised bid for a higher price. Beers allowed SKB to use the less expensive materials it had actually bid on. SKB assured Insite once again it could do the work using those materials. Beers then accepted Insite’s bid. Insite then sent a written subcontract to SKB showing a new price of $1,112,222.50 based on the use of newly approved materials. SKB sent Insite a notice of contract and requested an initial payment, but it never signed the subcontract and refused to do a substantial portion of the work included in its bid. Insite was forced to perform the work itself at substantially higher prices. Eventually, Insite entered into a written subcontract with SKB to perform a small portion of the landscaping work. SKB claimed it refused to perform over disputes in the first subcontract sent to it by Insite. At trial, there was also evidence that SKB had refused to do the work based on its realization that it had mistakenly underbid on the entire job. The trial court allowed Insite to pursue a claim for promissory estoppel. Insite got the judgment and SKB appealed.