MISTAKE IN TENDER.

New Zealand Herald, Volume LXVIII, Issue 20819, 11 March 1931, Page 14

MISTAKE IN TENDER.

CITY FIRM'S LOSS OF £2OOO.

TRANSPORT BOARD SUPPLIES. EX GRATIA PAYMENT SOUGHT. Having tendered by mistake a price of £5988 12s for supplying a quantity of cable and joint boxes to the Auckland Transport Board, when the amount should have been £7988 12s, Tolley and Son, Ltd., electrical merchants, of Anzac Avenue, made further representations to the board yesterday seeking an adjustment to alleviato somewhat tho very serious direct loss to the firm of £2OOO. The tender was accepted by the board last September, but immediately the firm received the board's order the error was noticed and within 24 hours of the acceptance of the price the firm made a request to the board to rescind the contract. Tho board, however, could not, agree to that course.

Tho firm decided to carry out tho contract at a loss. The cable, according to advice from the manufacturers, Johnson and Phillips, Ltd., is duo at Auckland on tho Tamaroa on April 6. "The need for an adjustment or allowance is unfortunately even more imperative to-day than it was at the date the contract was entered into, on account of tho prevailing, economic conditions," stated tho firm's letter to the board yesterday. "Under present circumstances, tho actual loss of £2OOO will be, frankly, a disaster of the most serious consequence to this com-

pany." It was pointed out that the Auckland Transport Board Act gave the board the necessary powers to make a suitable adjustment with the firm as an ex gratia payment out of revenue. In view of this ihe firm asked the board to make an additional payment equal to the difference between its tender and that of the lowest correct tender, a sum of £llOO. The board would not suffer in any way, as it was getting the very highest quality at the lowest tenderer's price.

The matter was referred to the committee of the whole board. Tho chairman, Mr. J. A. C. Allum, remarked that tho board had previously dealt with representations from the firm. The position had been discussed with its representative, but the firm's letter was not exactly what had been expected.