Construction Technology and Management

2. A sub-contractor submitted a "quotation" to a main contractor. The quotation was written on a piece of plain blank paper with only one sentence: "as requested by your staff, we advise you that the estimated price for completing the job will be around HK $2,000,000.00." Apart from that piece of blank paper, no other communication or letters were exchanged. 10 days later, the main contractor sent a letter to the sub-contractor accepting the "quotation" of HK $2,000,000.00 and asked them to commence works immediately. The sub-contractor refused to do so. Then the main contractor sued the sub-contractor for breaching the subcontract and claimed for damages. (a) Is the "quotation" submitted by the sub-contractor an offer? If not, what does it call properly with explanation? ( 5 marks) (b) How can you determine whether a quotation is an offer or not? In the above case, what makes you conclude that the "quotation" is an offer or not an offer? (10 marks) (c) In considering the above case, will the sub-contractor be liable for their refusal to commence works as instructed by the main contractor? Why? ( 5 marks)