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Contract AdminPreconstructionmedium27% of exam part

A general contractor receives subcontractor bids with the following ranges: electrical $45K-$65K, plumbing $38K-$52K, HVAC $72K-$89K. What should be the primary concern when selecting the lowest bidders?

Correct Answer

D) Subcontractor qualifications and ability to perform

While cost is important, the primary concern should be ensuring subcontractors are qualified, licensed, insured, and financially capable of performing the work as specified.

Answer Options
A
Impact on project schedule
B
Owner approval of subcontractor selection
C
Total cost savings to the project
D
Subcontractor qualifications and ability to perform

Why This Is the Correct Answer

When selecting subcontractors, the primary concern must be their qualifications and ability to perform the work properly. Simply choosing the lowest bidder without verifying their licensing, insurance, financial stability, experience, and technical capability can lead to poor workmanship, project delays, safety issues, and potential legal liability. A qualified subcontractor who can deliver quality work on time is more valuable than an unqualified low bidder who may cause costly problems.

Why the Other Options Are Wrong

Option A: Impact on project schedule

Owner approval may be required contractually, but the general contractor's primary responsibility is ensuring subcontractor qualifications before presenting options to the owner. This is a professional duty that comes before seeking approval.

Option B: Owner approval of subcontractor selection

While cost savings are important, focusing solely on total cost without considering subcontractor qualifications can result in much higher costs due to rework, delays, safety incidents, and potential legal issues from unqualified contractors.

Option C: Total cost savings to the project

Schedule impact is a secondary consideration that stems from subcontractor capability. An unqualified low bidder is more likely to cause schedule delays than a qualified contractor, making qualifications the primary concern.

Memory Technique

Remember 'QUALIFY before you BUY' - always verify subcontractor qualifications before considering price.

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