Bidder A includes a $22,000 allowance in its bid. Bidder B excludes that same required allowance and bids $1,318,000. What normalized comparison number should be used for Bidder B?
Correct Answer
A) $1,340,000
To compare equal scope, add the excluded required allowance to Bidder B: $1,318,000 + $22,000 = $1,340,000. Other choices subtract, leave the scope gap, or add the allowance twice.
Why This Is the Correct Answer
To compare equal scope, add the excluded required allowance to Bidder B: $1,318,000 + $22,000 = $1,340,000. Other choices subtract, leave the scope gap, or add the allowance twice.
Why the Other Options Are Wrong
Option B: $1,296,000
bid comparison normalization, choice a: $1,318,000 - $22,000 gives $1,296,000. That calculation subtracts those two listed numbers in that order.
Option C: $1,318,000
bid comparison normalization, choice b: the number $1,318,000 comes from $1,318,000 but stops before the calculation reaches $1,340,000.
Option D: $1,362,000
bid comparison normalization, choice d: $1,362,000 is off by $22,000 from the checked result $1,340,000 because it misuses the $22,000 item (Bidder A includes a $22,000 allowance in its bid).
Memory Technique
Store bid comparison normalization with its last math move; nearby answers are usually unfinished versions of $1,340,000.
Reference Hint
Open Construction Project Management, 5th Ed. (2022); use the index entry or section for "Bid leveling and allowance normalization" to confirm that To compare equal scope, add the excluded required allowance to Bidder B: $1,318,000 + $22,000 = $1,340,000.
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