A base bid is $1,840,000. The owner accepts Add Alternate 1 for $45,000 and Deduct Alternate 2 for $18,000. What contract amount results?
Correct Answer
C) $1,867,000
The resulting amount is $1,840,000 + $45,000 - $18,000 = $1,867,000. Other choices subtract both alternates, add only the additive alternate, or add both alternates.
Why This Is the Correct Answer
The resulting amount is $1,840,000 + $45,000 - $18,000 = $1,867,000. Other choices subtract both alternates, add only the additive alternate, or add both alternates.
Why the Other Options Are Wrong
Option A: $1,822,000
bid alternates, choice a: $1,822,000 is produced by $1,840,000 - $18,000. The error is using that partial/alternate setup.
Option B: $1,885,000
bid alternates, choice c: the number $1,885,000 comes from $1,840,000 + $45,000.
Option D: $1,903,000
bid alternates, choice d: $1,903,000 equals $1,840,000 + $45,000 + $18,000. That adds three listed values.
Memory Technique
Say the bid alternates rule aloud as a chain; the chain ends at $1,867,000, not an intermediate stop.
Reference Hint
Open Construction Project Management, 5th Ed. (2022); use the index entry or section for "Alternate bid arithmetic" to confirm that The resulting amount is $1,840,000 + $45,000 - $18,000 = $1,867,000.
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