NJ Supreme Court Rejection of $70.8M Bridge Bid Sends Sharp Message to Contractors: "No Room for Error" in Public Bidding

EAST BRUNSWICK, N.J. - May 6, 2025 - PRLog -- Following a pivotal ruling from the New Jersey Supreme Court issued yesterday that could reshape how contractors approach public project bids, Kemeny, Ramp & Renaud, LLC issued a Guidance Alert for construction professionals and public procurement officials.

On May 5, 2025, the state's highest court ruled in In the Matter of Protest Filed by El Sol Contracting and Construction Corp. that a $70.8 million bid for a Newark Bay bridge redecking project was rightfully rejected by the New Jersey Turnpike Authority (NJTA) because of a technical flaw in the bid paperwork — a defect the Court found unwaivable under New Jersey law. More information about the case may be found here.

The law firm's alert provides key takeaways and risk mitigation strategies for contractors and agencies navigating the public bidding process.

"This case is a sobering reminder to contractors: even minor paperwork issues — like an improperly worded Power of Attorney — can sink a multimillion-dollar bid," said Alex Kemeny, Managing Partner of Kemeny, Ramp & Renaud. "Our Guidance Alert outlines what went wrong, what the Court decided, and how public contractors can avoid the same fate."

What Contractors Need to Know

The firm's Guidance Alert offers a contractor-focused breakdown of the ruling, outlining the major implications:

• Documentation Must Be Precise: All bonding-related paperwork must be fully authorized by a valid PoA — no shortcuts or assumptions.
• Past Practice Doesn't Protect You: Prior acceptance of similar documents is irrelevant if the current bid fails to meet specifications.
• Invalid Surety = Disqualified Bid: A defective CoS remains a fatal flaw under New Jersey law, no matter the bid's dollar value.

Why This Ruling Matters to the Construction Industry

Kemeny, Ramp & Renaud, managing partner, Alex Kemeny, noted, "This decision reinforces the critical importance of strict compliance in public bidding. The Court once again made it clear that even seemingly minor defects, such as limitations in a Consent of Surety, can lead to bid rejection. For contractors, this case is a stark reminder to meticulously review bidding requirements and ensure all documentation is properly executed. For public entities, the ruling reaffirms the necessity of enforcing bid specifications to maintain fairness and transparency in the public contract procurement process."

The firm's Guidance Alert from the firm's business transaction attorneys is designed to help project managers, compliance officers, estimators, and legal counsel stay ahead of regulatory risk in one of the most highly scrutinized areas of the construction industry: public procurement. The New Jersey law firm (https://www.kemenylaw.com/)'s attorneys (https://www.kemenylaw.com/the-team) issued the alert earlier today.

📘 Access the Full Alert

📰 Read the full alert here (https://www.kemenylaw.com/post/new-jersey-supreme-court-upholds-turnpike-authority-s-bid-rejection-in-important-new-jersey-public-b)

Photo:
https://www.prlog.org/13075374/1