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Construction Law Authority / Procurement  / Did You Include All Costs In Your Bid?

Did You Include All Costs In Your Bid?

So it is time to sign your price proposal and get your bid in to a public agency. Have you considered all costs to perform the work, and those that are in addition to the cost of labor and materials?

The public agency’s terms and conditions should spell out all of the costs that are to be included in the price proposal. Such costs may go well beyond the cost of the work itself. For example, it may be that the cost of bonds, additional insurance coverage, permits and inspections are to be included in the cost of the work, and therefore the bid amount. It is also important to include all required elements as part of your pricing to make sure that your bid is responsive.

Accordingly, it is imperative that bidders carefully consider all requirements that have a cost when estimating and calculating a bid. Generally, a public agency may hold a bidder responsible for its bid, even when the bidder made a mistake in its pricing. In the event that the bidding terms and conditions are not clear with respect to who is responsible for any additional costs, then bidders should consider seeking a clarification or an addendum from the public agency to avoid any uncertainty prior to submission of the bid.

William J. Cea

William Cea

wcea@bplegal.com

As a Board Certified Construction Attorney, Mr. Cea has handled multi-million dollar construction disputes, including defect cases on behalf of community associations, individual property owners, contractors, design professionals and developers.

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