Pauline Purchaser has advertised a contract and is pleased by the number of bids she’s received. When she opens the bids, much to her dismay, she discovers that all are way over budget. As Pauline regroups to figure out what went wrong, she realizes there was a flaw in the specifications. She decides to reject […]
Posts Tagged ‘rejecting bids’
Conflicts of Interest and Subcontractors
Wednesday, August 4th, 2010One of your city council members, Georgia Peach, is a plumber, and owns her own plumbing business, Peaches & Plumbs, LLP. Peaches & Plumbs often subcontracts with one of the bigger and more reputable general contractors in town, Constructive Construction, Inc. Your city is getting ready to renovate the town hall, and, as it turns […]
Low Bidder Limbo: When the Low Bid Is Too Low
Tuesday, November 10th, 2009You’ve just received bids on a construction project estimated (by your engineer) to cost about $2 million. The lowest bid is for $1.5 million, and the next highest bid is $1.9 million, with the other bids ranging from $2.1 million to $2.3 million. After reviewing the bids, you think the lowest bidder must have made […]
Prequalification: Good, bad, or indifferent?
Tuesday, October 20th, 2009Your local government is planning a major construction project, and the engineering firm working with you on the project has strongly recommended prequalifying contractors before bidding. The engineer tells you that this will ensure that the bids you receive are only from serious, qualified bidders, making the bidding process more efficient. This sounds appealing to […]
Contracting Without a License? Beware.
Tuesday, October 13th, 2009You’ve just received bids on a construction project costing $50,000, and discovered that the lowest bidder is not a licensed general contractor. When you bring this to the bidder’s attention, she tells you that she will be licensed by the time the project is scheduled to start. Can you accept her bid?