Tender terms excluding GST from quoted rates require the employer to bear GST on contractor bills.

Tender conditions expressly excluded GST from the quoted bid price, so the contractor was not required to include GST in its rate. Reading the tax clauses together, later general references to statutory taxes could not override the specific tender term excluding GST, and any ambiguity in the drafted conditions would operate against the tendering authority as their author. The corporation therefore had to bear the GST component on the contractor's bills, and the contract was governed by the tender terms as written.

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Issues: Whether GST was excluded from the bid price under the tender conditions and, if so, whether the corporation was bound to pay the GST component on the contractor's bills.

Analysis: Clause 3.3.3 of the notice inviting tender expressly excluded Goods and Services Tax from the rate to be quoted, and the bill of quantities also required the bid amount to be stated without taxes. Reading Clause 3.3.3 with the other tax clauses, the exclusion of GST could not be neutralised by later general references to statutory taxes and mandatory remittances. The tendering authority, being the author of the conditions, could not after accepting the bid and entering into the contract insist that GST should be borne by the contractor. In contractual interpretation, the clause as written had to govern, and any arguable ambiguity would operate against the maker of the tender conditions.

Conclusion: GST was not required to be included in the quoted bid, and the corporation was liable to pay the GST component on the contractor's bills.

Final Conclusion: The dismissal of the appeal left intact the direction that the tender conditions govern the contract and that the GST component be paid by the corporation.

Ratio Decidendi: Where tender terms expressly exclude GST from the quoted rate, the employer cannot later shift that tax burden to the contractor by relying on general clauses covering other taxes.

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