A bid submission deadline is 2:00 PM on Friday. Your bid is completed at 1:45 PM but you notice a potential $15,000 error in the electrical subcontractor's quote. What should you do?
Correct Answer
D) Quickly estimate a reasonable adjustment and submit the corrected bid
With only 15 minutes remaining, the best option is to make a reasonable adjustment based on experience and submit the bid. This allows participation while protecting against a significant error that could impact project profitability.
Why This Is the Correct Answer
Option D is correct because it balances business opportunity with risk management. With 15 minutes remaining, there's insufficient time to verify the error with the subcontractor, but a $15,000 mistake could severely impact project profitability. Making a reasonable adjustment based on professional experience and market knowledge allows the contractor to submit a competitive bid while protecting against potential losses. This demonstrates sound business judgment under time pressure.
Why the Other Options Are Wrong
Option A: Submit the bid with a contingency note about the potential error
Not submitting the bid means losing a business opportunity entirely. While there's uncertainty about the error, completely withdrawing from the bidding process is overly conservative and could result in lost revenue. The potential error can be reasonably estimated and adjusted for, making non-participation an unnecessarily extreme response.
Option C: Do not submit the bid due to the uncertainty
Submitting a bid with a known potential $15,000 error is extremely risky and poor business practice. If the error results in an underpriced bid and you're awarded the contract, you'll be legally bound to perform at that price, potentially causing significant financial loss. Professional contractors have a responsibility to submit accurate bids based on their best knowledge.
Memory Technique
Think 'DART' - Deadline pressure requires quick Adjustment based on Reasonable estimates to protect against major financial Trouble
Reference Hint
Florida Building Construction Standards - Chapter on Bidding Procedures and Contractor Business Practices
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