The City of Denver recently announced that it was terminating its contract with the real estate developer it hired to expand the Colorado Convention Center. The expansion is set to cost the city $233 million. However, the city recently discovered the developer engaged in bidding misconduct.
According to the Denver Mayor’s Office, state bidding requires an “open, fair and competitive process.” Unfortunately, the city believes it discovered information that this process did not occur.
An investigation is currently underway, per the request of the Mayor. The city claims the real estate developer intentionally influenced the selection of a construction company. According to a local news station, the Mayor believes there were illegal interactions between a city official involved in the project and someone working for the developer.
Last month, the Denver Public Works Department discovered the project had been interfered with. According to a recent article, there is evidence the developer acquired confidential city documents and engaged in discussions with a city official about the selection process. The developer then adjusted its bidding plans accordingly.
As a result, the city has now terminated the almost $10 million contract with the real estate developer. The city is again in the bidding process of finding a new construction company–this time, one that will not engage in bidding misconduct.
The bidding process can be extremely complex. Without realizing it, many real estate developers can engage in bidding misconduct. In order to protect yourself in a real estate transaction, consult with an experienced real estate attorney. Not only can an attorney help protect you in a dispute, but they can help prevent one from occurring.