A steel quote is $142,000 and the estimator carries a 4% escalation allowance before award. What amount should be carried for steel?
Correct Answer
D) $147,680
Add the escalation allowance to the quoted price.
Why This Is the Correct Answer
Add the escalation allowance to the quoted price.
Why the Other Options Are Wrong
Option A: $136,320
$136,320 is below the supported result for material escalation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $145,550
$145,550 is below the supported result for material escalation; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $153,360
$153,360 is above the supported result for material escalation; it likely adds scope or money the rule does not allow.
Memory Technique
Prices Delayed-Award contract math: approved scope is the ruler for material escalation.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Preconstruction estimating; escalation allowance; match the role, timing, and required approval before choosing.
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