FORFEITURE OF DEPOSIT
CONTRACT FOR SOLOMON’S KNOB DAM. A SUM OF FIVE HUNDRED POUNDS
When the City Council called for tenders for the construction of the Solomon’s Knob Dam, it was made a condition of tender that contractors should make a deposit of £500 as a guarantee of good faith. The tender of J. O’Donnell and Co. was accepted, being the lowest (£40,035) and in order, but the contractors subsequently withdrew, not being disposed to go on with the work. Messrs Martin, Hurrell, and Snadden’s tender was finally accepted at a price of £46,424.
At yesterday’s meeting of the Council, the Finance and Property Committee recommended: “That the applicant for a refund of his deposit lodged in connection with a contract which he refused to complete be informed that his deposit cannot be refunded.” The Mayor (Hon. T. W. Hislop), in moving the adoption of the report, explained that the contractor had concluded he had made a mistake; however, the form of contract warranted the Council retaining the deposit. It would be unwise, in reference to future contracts, if any leniency was shown in this instance.
Councillor Carmichael moved that the clause be referred back to the committee for reconsideration. The contractor had withdrawn prior to his receipt of the notice accepting his tender. The Mayor stated that, while he believed this to be true, the Council’s acceptance was delivered to the contractor’s house before his withdrawal was received. The committee had confirmed that the Council was within its legal rights in refusing to refund the deposit.
Councillor Biss stated that the committee had thoroughly considered the matter and that the report should be adopted. “Why should the Council argue the contractor’s case? It was for the contractor to petition the Council for a refund, and only then could the matter be reconsidered. If sympathy was shown in this case, the Council would be seen as soft-hearted, and others would seek the same privilege.”
Councillor Carmichael noted that if the contractor had realised his deposit would be forfeited, he would have proceeded with the work. The report was adopted.
