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The Drennan rule refers to a particular way of looking at arrangements and bids between a general contractor and a sub-contractor. In the landmark legal case of Drennan v. Star Paving, Judge Traynor ruled that when a sub submits a bid that is then used by the general, the sub-contractor ought to be held to that bid regardless of whether or nor their bid was accurate. This, in theory, forces sub-contractors to be more careful in making sure that their bids are accurate. This is the view favored by most courts (but not all) and is known as the Drennan Rule.

The reverse of this way of thinking is attributed to Judge Learned Hand (yeah, his name is Learned Hand). Judge Hand ruled in a separate case that the subcontractors are not bound to the general contractor until there is a traditional contract formed by offer and acceptance.

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2d ago

The Drennan rule in construction law states that a subcontractor can claim damages from a general contractor who has relied on the subcontractor's bid to secure a project, even if they did not directly enter into a contract. This rule helps to protect subcontractors from having their bids used for securing projects without compensation.

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