The Courts and Boards of Contract Appeals have uniformly held that an Owner, with superior knowledge as to a material fact likely to impact a bidder's cost or schedule of performance, who fails to disclose completely and accurately such information to bidders of record, shall be deemed to have breached the contract; the contractor will be paid for damages resulting therefrom under the "constructive change" theory. This would include the witholding of material facts regarding (1) schedules of other prime contractors and (2) design defects known to the Owner at the time of bid. It includes the witholding not only of technical information, but non-technical information which is critical to the bidder's cost or schedule performance.
- J. A. Jones Construction Co. v. United States, 182 ct. cl. 615 (1968)
- Hardeman-Monier Hutcherson v. United States, 198 ct. cl. 472, 458 F.2d 1364 (1972)
- Helene Curtis Industries, Inc. v. United States, 160 ct. cl. 437
- E. L. Peamer Co. v. City of Swartz Creek, 256 N.W. 2d 447
- G. W. Galloway Co., ASBCA 17436, 77-2 BCA 12,640
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