You receive three bids for electrical work: $85,000, $92,500, and $78,000. The engineer's estimate is $88,000. Which bid should you investigate further before making a decision?
Correct Answer
C) $78,000 bid
The $78,000 bid is significantly lower than the engineer's estimate and other bids, indicating potential errors or omissions that could lead to claims or poor performance.
Why This Is the Correct Answer
The $78,000 bid is significantly lower than both the engineer's estimate ($88,000) and the other competitive bids, representing an 11.4% deviation below the engineer's estimate. Such a substantial variance suggests the bidder may have made calculation errors, omitted scope items, or misunderstood project requirements. This could lead to change orders, claims, or substandard work quality during construction, making it essential to investigate before acceptance.
Why the Other Options Are Wrong
Option A: $85,000 bid
The $85,000 bid is only 3.4% below the engineer's estimate, which falls within a reasonable variance range and doesn't raise red flags about potential errors or omissions.
Option B: $92,500 bid
The $92,500 bid is 5.1% above the engineer's estimate, which is a reasonable variance that doesn't indicate significant problems with the bid preparation.
Option D: All bids are acceptable
Not all bids are acceptable because the $78,000 bid shows a concerning deviation that requires investigation before it can be considered acceptable.
Memory Technique
Remember 'Too Low = Red Flag': When a bid is significantly lower than expected, it's like a red flag warning of potential problems ahead.
Reference Hint
Florida Building Code Chapter 1, Section 105 - Permits and Construction Documents, and AIA A201 General Conditions regarding contractor qualifications and bid evaluation
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