You receive three electrical subcontractor bids: Contractor A - $45,000 (excludes permits), Contractor B - $48,500 (includes all items), Contractor C - $44,200 (excludes temporary power). The permit cost is $800 and temporary power is $1,200. Which bid should be selected based on total cost?
Correct Answer
A) Contractor C at $45,400 total
Contractor A total: $45,000 + $800 = $45,800. Contractor B: $48,500 (complete). Contractor C: $44,200 + $1,200 = $45,400. Contractor C has the lowest total cost when all items are included.
Why This Is the Correct Answer
Contractor C has the lowest total cost when all items are properly included. To make an accurate comparison, all bids must be normalized to include the same scope of work. When we add the missing temporary power cost of $1,200 to Contractor C's base bid of $44,200, the total becomes $45,400, which is lower than both Contractor A's normalized total of $45,800 and Contractor B's complete bid of $48,500.
Why the Other Options Are Wrong
Option B: Contractor B at $48,500 total
Contractor A's total cost is $45,800 ($45,000 + $800 permit), which is $400 more than Contractor C's normalized total of $45,400.
Option C: All bids are equal when normalized
Contractor B's bid of $48,500 is the highest total cost, being $3,100 more than Contractor C's normalized total and $2,700 more than Contractor A's normalized total.
Memory Technique
Use 'ABC-Add Before Compare' - always Add missing costs Before Comparing bids to ensure apples-to-apples evaluation
Reference Hint
Florida Building Code Chapter 1 - Administration and Enforcement, and general contracting cost estimation sections in contractor reference materials
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