Southern Electrical Services bid on a Houston airport project using prevailing wage rates provided by the City. After winning the contract, the City issued higher prevailing wage rates, forcing SES to pay workers more than it had budgeted. SES sued the City for breach of contract. The court ruled that SES could proceed with its lawsuit despite the City's claim of governmental immunity, because Texas law allows breach of contract claims against cities. This means subcontractors can hold cities accountable when bid documents contain incorrect wage information.
Document all wage rates and requirements from bid documents before submitting your bid—these become part of the contract and the city is responsible for accuracy
If a city issues amended wage rates after you've won the contract, you may have a valid breach of contract claim even though the city has governmental immunity protections