A long-lead equipment quote is $238,000. The owner delays award and the estimator carries 3.25% escalation. What amount should be used?
Correct Answer
D) $245,735
Add escalation to the current quoted amount.
Why This Is the Correct Answer
Add escalation to the current quoted amount.
Why the Other Options Are Wrong
Option A: $230,265
$230,265 is below the supported result for escalation allowance; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $241,250
$241,250 is below the supported result for escalation allowance; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $253,470
$253,470 is above the supported result for escalation allowance; it likely adds scope or money the rule does not allow.
Memory Technique
Escalation Allowance gate for Negotiated Includes: paper opens before money moves.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Preconstruction estimating; escalation and quote validity; confirm the required quantity, authority, timing, or record before selecting the answer.
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