A quality-control review flags the following point: a bid is $4,097,000 and bid security is 5 percent. What security amount is required?
Correct Answer
C) $204,850
The calculation gives $204,850 for the stated bid security. Other choices: the distractors come from omitting an adjustment, using the wrong rate, or applying a rounded shortcut for calculation item 235.
Why This Is the Correct Answer
The calculation gives $204,850 for the stated bid security.
Why the Other Options Are Wrong
Option A: $184,365
bid security, choice a: $184,365 omits a required add-on/subtraction; the numeric gap is $20,485.
Option B: $225,335
bid security, choice c: $225,335 adds an extra unstated add-on/subtraction; the numeric gap is $20,485.
Option D: $256,062
bid security, choice d: $256,062 adds an extra unstated add-on/subtraction; the numeric gap is $51,212.
Memory Technique
Say the bid security rule aloud as a chain; the chain ends at $204,850, not an intermediate stop.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "bid security calculation" to confirm that The calculation gives $204,850 for the stated bid security.
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