By Paul Emanuelli

This article is an excerpt from Government Procurement, which is available for purchase.

In its June 2017 decision in ASI Group v. Toronto, the Ontario Superior Court of Justice upheld a municipality’s decision to cancel and retender a project. The case dealt with a tender call for dive services. The municipality decided to cancel and retender the project upon discovering that it had failed to provide material background information to all bidders. The low bidder sued. The court rejected the lost profit claim, finding that the city was under a duty to cancel and retender the contract since the disclosure of missing material information was necessary to maintain a level playing field between incumbent contractors and new bidders.