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Bid withdrawal: 2 North Carolina deadlines

WrenchQuarry Editorial Team · Published · 11 min read

In North Carolina, check the 72-hour bid withdrawal window and the 20-day deadline to contest a denial in court.

Key takeaways

  • Written request must be made before the award and within the statute's time limit, unless bidder instructions specify a longer period.
  • The clock starts at bid opening, not submission, so record the exact date and time the bids were opened before anything else.
  • Send the request to the agency that invited the proposals, not a subcontractor, supplier, or sales rep, even if it concerns the same job.
  • If the agency denies your request, the deadline to contest in court runs from the date you receive the ruling.

A material quote may change, a subcontractor may back out, or a line item may be missing from your estimate. If you are an owner or estimator at a small electrical or HVAC firm, you may need to pull a public bid back before the agency awards the contract. Public bidding carries rules that a private quote does not, and some of those rules run on short clocks.

This post covers two deadlines in North Carolina's statute on withdrawing bids, along with a few related points from that statute and one rule from Virginia's code on bid bonds. It is general information, not legal advice. If the job is large or the stakes are high, read the statutes yourself and talk with a lawyer before you act.

Deadline 1: your written request is due within 72 hours of bid opening

Under North Carolina's statute, a request to withdraw a bid must be made in writing no later than 72 hours after the opening of bids, unless the instructions to bidders, provided before the bids were opened, specify a longer period. Read the statute.

The sentence sets out three conditions. The request must be in writing. It must go to the public agency which invited the proposals for the work. And it must be made prior to the award of the contract, but not later than 72 hours after the opening of bids. The conditions work together. A request made on time but after the award does not meet the quoted wording, and a request made before the award but after the 72 hours does not either, unless the instructions to bidders allowed a longer period.

The 72 hours is a default, not the whole story. So before you do any arithmetic, find the instructions the agency gave bidders and read what they say about withdrawing a bid. Do not rely on a general memory of how the rule works. The wording in front of you is the one that counts.

Write down the exact date and time the bids were opened, and keep that record with your bid file. Then count hours forward. If bids were opened at 2:00 p.m. on a Monday, 72 hours later is 2:00 p.m. on Thursday, unless a longer period applies. The statute measures hours, so plan around hours rather than around business days. Put the deadline on your calendar and set a second reminder for the day before.

Check who receives the request. A message to a subcontractor, a supplier, or a sales rep is not a request to the agency, even if it is about the same job. Address the request to the agency, and send copies to anyone on your team who needs to know.

Plan for proof of delivery. Ask the agency's contact, in writing, how they want to receive it. Keep a copy of exactly what you send, with the date and time it went out.

Deadline 2: if the request is denied, you have 20 days to contest it in court

If the agency denies your request, North Carolina's statute gives you 20 days after you receive the ruling to contest the matter by filing a civil action in any court of competent jurisdiction of the State of North Carolina. Read the statute.

The right applies only when the ruling denies the request. If the agency grants your request, that sentence does not come into play.

Record the date you received the ruling separately, and keep any delivery record that supports it. Write that date on the ruling itself, put 20 days on your calendar, and treat the date as firm. Ask a lawyer how the count works before you rely on any particular end date.

A civil action is a lawsuit filed in a court. A court of competent jurisdiction is one with the authority to hear the matter. The quoted language points to a court of the State of North Carolina, not a court in another state. If you are not sure which court that would be, a lawyer can tell you.

Check what the ruling contains, how it was delivered, and what a filing requires. Read the full statute and the ruling you receive. Keep those details with your separately recorded delivery date.

Illustrative example: comparing the bond limits

For an illustrative Virginia bond comparison, suppose the gap between bids is 20 and the bond's face amount is 40. The lower amount is 20, so that is the forfeiture ceiling in this example. This comparison does not determine whether forfeiture applies.

Today, open your bid file, record the opening time, and check which instructions apply to this solicitation before drafting your request.

Does the agency have to hold a hearing?

Yes. Under North Carolina's statute, when a bidder files a request to withdraw, the agency shall promptly hold a hearing on it. Read the statute.

The statute also requires the agency to give the withdrawing bidder reasonable notice of the time and place of any such hearing. Do not plan around a set number of days for notice. Once you file, watch your mail, email, and phone messages closely, and make sure the agency has current contact information for you.

Stay reachable while you await the hearing and ruling. Plan to stay reachable from the day you file until the matter is settled.

Prepare as if you will have to explain the request. Gather the bid as you submitted it, the record of the bid opening, the instructions to bidders, your written request, and any proof of delivery. Put them in date order. Write a short, factual summary of what went wrong and when you noticed it. Keep the summary to facts you can support with a document. Your goal is to make the record easy for the agency to follow.

The hearing is about the request. Keep the hearing notice and the agency's ruling with the rest of your bid file.

Can you rebid the work if it is relet?

No. Under North Carolina's statute, if the work or purchase is relet for bids, under no circumstances may the bidder who has filed a request to withdraw be permitted to rebid the work or purchase. Read the statute.

This is the part of the rule that should shape your decision. Withdrawing a bid is not a way to fix a pricing error and then compete again if the agency puts the work back out for bids.

The quote is conditional. It applies if the work or purchase is relet for bids. Do not assume how the agency will handle the work. If you need to know, ask the agency in writing what it plans to do with the work.

Because of this rule, put the two options side by side before you file. One option is to honor the bid. The other is to withdraw and accept that you cannot rebid if the work is relet. For each option, write down the cost to your firm, the risk you are carrying, and what you know about the error. Make the decision on paper, not in the middle of a phone call with an agency. A written comparison also gives you something to show your owner or partners.

Do not assume that a withdrawn bid simply goes away. Treat the request as a decision with consequences that continue after the withdrawal itself.

Does Virginia limit forfeiture under a bid bond?

Yes. Under Virginia's statute on bid bonds for construction contracts, no forfeiture under a bid bond shall exceed the lesser of two amounts. Read the statute.

The full quoted text reads: "No forfeiture under a bid bond shall exceed the lesser of (i) the difference between the bid for which the bond was written and the next low bid, or (ii) the face amount of the bid bond." The two amounts are the gap between your bid and the next low bid, and the face amount of the bond. The cap is whichever of those two is lower. If the gap is smaller than the bond's face amount, the gap is the ceiling. If the gap is larger, the face amount is the ceiling.

Read the limit carefully. The quoted text sets a ceiling on forfeiture. Do not treat withdrawal alone as proof that forfeiture applies. Do not read the quote as a withdrawal rule. For what triggers a forfeiture on your bid, check the bid bond itself and the solicitation documents.

The rule is also Virginia's. It does not tell you how a bond in North Carolina or any other state is treated, and it does not replace the statute of the state where your bid is pending. If you bid in more than one state, keep a separate note for each state's rules so you do not mix them up.

Keep the figures together. Store the bid amount and the bond amount in one place, so you can compare them against the limit if you ever need to. Label the note with the job name and the agency, so you can find it quickly. For estimate records, see the equipment estimate line item guide.

Do these rules apply in your state?

Not automatically. The rules quoted in this post come from North Carolina's statute and, for the bid bond point, Virginia's code. Each applies only in the state that enacted it. A rule from one state does not become a rule for every public agency.

Other states may have their own rules on withdrawing bids, and agencies may set their own instructions. The careful approach is to check three places: the solicitation documents, your state's statutes and regulations on public bidding, and any written answer you get from the agency. If you cannot find a clear rule, ask the agency's contact in writing which rule applies to the bid.

The instructions to bidders matter here too. Read the instructions for the bid you actually submitted.

Be careful with advice from other firms. A story about what happened on someone else's job is not a rule. It may describe a different agency, a different state, or a different set of instructions. Verify the rule that applies to your bid before you rely on it.

This post does not address federal bids. If your bid is for federal work, look to the rules that govern that solicitation and ask the contracting office for guidance.

What should you do first if you need to pull a bid?

First, pin down the exact time the bids were opened, and then read the instructions to bidders. Check the applicable withdrawal period before drafting the request. Read the statute.

Then work through these steps in order. Each one follows from the quotes above.

  • Write down the exact time the bids were opened.
  • Read the instructions to bidders that were provided before the opening. Look for any longer period they specify.
  • Address your request to the public agency that invited the proposals, and put it in writing.
  • Make sure the request is made before the contract is awarded.
  • Send the request within the window.
  • Keep proof of delivery and a copy of exactly what you sent.
  • If the agency denies the request, record the date you received the ruling.
  • Watch for notice of the hearing's time and place.
  • Before you file, consider the restriction on rebidding if the work is relet.

Do the first three steps before you draft anything else. A clear deadline and a clear recipient are the foundation for the rest of the request.

What should go in your bid file?

Keep a dated record of the bid opening, the instructions to bidders, your written request, proof of delivery, any hearing notice, and any ruling you receive.

Each item does a specific job. The bid opening record fixes the start of the withdrawal period. The instructions show whether a longer period applies. The written request and proof of delivery show what you sent to the public agency and when. A hearing notice shows the time and place the agency gave you.

Store the file where you can reach it quickly. Your calendar should hold each deadline you calculate, with a note that says what it is based on. If a colleague has to step in while you are out, the file should explain itself without you. A short cover sheet that lists the dates and sources can save time when someone new has to pick up the matter. For related handoff planning, see the work order checklist.

Note the things you do not yet know, such as whether a hearing has been scheduled or how the agency intends to handle the work if it is relet. Mark those as open questions with the date you raised them. Clear notes now mean no one has to guess later.

Keep in mind the limits of this post. It covers North Carolina's statute, one rule from Virginia's code on bid bonds, and nothing else. For any real decision, read the full text of the statutes, read the bid documents for your job, and talk with a lawyer who knows public bidding in the state where you bid.

Sources

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