Bay Cities Paving & Grading, Inc. v. City of San Leandro

Line of Business : Surety
Court Type : Appellate
Case Type : Bid Bonds
State : California
Case Date : 01/01/2014
Case Description :

In Bay Cities Paving & Grading, Inc. v. City of San Leandro, 167 Cal.Rptr.3d 733 (Cal.App. 2014) the bid documents required submission of a 36 page package of documents that included the two page bid bond.  The low bidder included the second page of the bid bond with the signatures binding the surety and principal but inadvertently omitted the first page of the bond.  The bond was the City’s standard form, and the only information on the first page to be filled in by the bidder was the identity of the parties and the project, which also appeared on the second page.  After the bids were opened, the low bidder provided the missing page.  The City waived the irregularity and accepted the low bid.  The second low bidder sought judicial review, and appealed from the trial court’s denial of its petition.  The Court held that the City did not abuse its discretion in waiving the deviation in the low bid and affirmed the trial court’s judgment denying the second low bidder’s petition for a writ of mandamus.  The Court rejected the petitioner’s arguments that the deviation gave the low bidder an option to withdraw without forfeiting the bond.  There was substantial evidence to support the City’s determination that the deviation was inconsequential.

Case Description :

In Bay Cities Paving & Grading, Inc. v. City of San Leandro, 167 Cal.Rptr.3d 733 (Cal.App. 2014) the bid documents required submission of a 36 page package of documents that included the two page bid bond.  The low bidder included the second page of the bid bond with the signatures binding the surety and principal but inadvertently omitted the first page of the bond.  The bond was the City’s standard form, and the only information on the first page to be filled in by the bidder was the identity of the parties and the project, which also appeared on the second page.  After the bids were opened, the low bidder provided the missing page.  The City waived the irregularity and accepted the low bid.  The second low bidder sought judicial review, and appealed from the trial court’s denial of its petition.  The Court held that the City did not abuse its discretion in waiving the deviation in the low bid and affirmed the trial court’s judgment denying the second low bidder’s petition for a writ of mandamus.  The Court rejected the petitioner’s arguments that the deviation gave the low bidder an option to withdraw without forfeiting the bond.  There was substantial evidence to support the City’s determination that the deviation was inconsequential.

Share this entry

Surety Protects
Learn how surety
bonds protect taxpayers,
save time,
reduce costs and
keep projects on track.
U.S. Senate Unanimously Supports Surety Bonds and the Protections and Economic Value They Provide to Our Nation’s Critical Infrastructure Development
See Senators Capito, Carper and Van Hollen speak on the Senate floor about the importance of surety.

The Surety & Fidelity Association of America Foundation Awards 19 Students With $47,500 in Scholarships

SFAA Foundation announces 19 students selected as recipients of a $2,500 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2023.

News & Events

Surety Industry Advances Critical Federal Policy

SFAA and NASBP led a Legislative Fly-In with members from across the industry to educate Congress on the value of construction surety bonds and advocate for key legislative priorities. Surety professionals held over 135 meetings with policymakers and staff to emphasize the significant savings that surety bonding provides to taxpayers across the country.

The Surety & Fidelity Association of America Foundation Awards Record $90,000 in Scholarships

The Surety & Fidelity Association of America Foundation (SFAA Foundation) has awarded a record $90,000 in scholarships to thirty-one students through its Surety and Fidelity Intern and Scholarship Program.

SFAA’s Alex Gleason Named Among Nation’s Top Lobbyists for 2025

The Surety & Fidelity Association of America (SFAA) has announced that Alex Gleason, Head of Federal Government Affairs, has been named one of the 2025 Top Lobbyists by the National Institute for Lobbying & Ethics (NILE).