A base bid is $2,450,000. The owner accepts Add Alternate 1 for $68,000 and Deduct Alternate 2 for $24,000. What contract amount results?
Correct Answer
D) $2,494,000
The contract amount is $2,450,000 + $68,000 - $24,000 = $2,494,000.
Why This Is the Correct Answer
The contract amount is $2,450,000 + $68,000 - $24,000 = $2,494,000.
Why the Other Options Are Wrong
Option A: $2,382,000
accepted alternates amount, choice a: $2,450,000 - $68,000 gives $2,382,000. That calculation subtracts those two listed numbers in that order.
Option B: $2,518,000
accepted alternates amount, choice b: the number $2,518,000 comes from $2,450,000 + $68,000.
Option C: $2,542,000
accepted alternates amount, choice d: $2,542,000 is produced by $2,450,000 + $68,000 + $24,000. The error is using that partial/alternate setup.
Memory Technique
Say the accepted alternates amount rule aloud as a chain; the chain ends at $2,494,000, 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 alternates" to confirm that The contract amount is $2,450,000 + $68,000 - $24,000 = $2,494,000.
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