During bid evaluation, a contractor receives the following electrical subcontractor bids: $85,000, $92,000, $78,000, and $105,000. Which bid requires the most careful scrutiny?
Correct Answer
C) $78,000
The $78,000 bid is significantly lower than the others and requires careful scrutiny to ensure the bidder hasn't made errors, omitted items, or may be unable to perform the work profitably.
Why This Is the Correct Answer
The $78,000 bid is significantly lower than the other bids, representing a substantial deviation from the average bid amount. When a bid is unusually low compared to other qualified bidders, it raises red flags about potential calculation errors, missing scope items, or the subcontractor's ability to complete the work profitably. This low bid requires the most scrutiny to verify accuracy and feasibility before acceptance.
Why the Other Options Are Wrong
Option A: $92,000
While the $105,000 bid is the highest, it's not as concerning as an unusually low bid since high bids typically don't pose the same risks of incomplete work or contractor failure
Option B: $105,000
The $85,000 bid is close to the middle range of the bids received and doesn't represent an extreme deviation that would require special scrutiny
Option D: $85,000
The $92,000 bid falls within the reasonable range of the other bids and doesn't show any concerning patterns that would require additional investigation
Memory Technique
Think 'Too Low To Trust' - when a bid is significantly lower than others, it's too low to trust without thorough investigation
Reference Hint
Florida Building Code - Chapter 1, Administrative provisions regarding bid evaluation procedures and contractor qualification requirements
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