The Missing Fire-Rated Hardware and a Low Sub Bid
North Fork Construction is preparing a lump-sum bid for a $6.2 million middle-school renovation. The bid is due Friday at 2:00 p.m. The estimator's takeoff shows 84 doors: 46 rated and 38 non-rated after Addendum 3, which was issued Tuesday and also added card readers at eight doors. The hardware supplier's quote prices rated doors at $1,150 each and non-rated at $450 each, but a footnote excludes closers, rating labels, and electrified hardware, which the estimator values at $41,800. The firestopping subcontractor's $28,400 bid carries a letter stating 'excludes fire-rated sealants at head-of-wall,' estimated at $9,600. The mechanical subcontractor's $612,000 bid says 'temperature controls by others.' The estimator plans to carry the supplier's base number, ignore the exclusions, and 'clarify after award' because the bid is already low by 3%. On Thursday afternoon the estimator discovers a separate $118,000 arithmetic error in the masonry takeoff that would make the bid even lower.
1. Quantify the scope gaps that should be added to the bid before submission. Show the arithmetic and explain why 'clarify after award' is risky.
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Rated doors: 46 x $1,150 = $52,900. Non-rated doors: 38 x $450 = $17,100. Base hardware = $70,000. Add the excluded closers, labels, and electrified hardware: $41,800. Hardware total = $111,800. Firestopping: $28,400 + $9,600 = $38,000. The known gaps are therefore $41,800 + $9,600 = $51,400, before card readers and controls.
The eight card readers are unpriced and must be estimated or carried as an allowance. Temperature controls are also undefined; the mechanical bid excludes them, so the GC must price them or obtain a written inclusion. 'Clarify after award' is risky because the owner will award on the base bid and the contract will likely incorporate the full scope. A post-award clarification is not a change order, and North Fork may be required to furnish the omitted items at its own cost. A 3% cushion on $6.2 million is about $186,000, but the known gaps plus controls can consume much of it. The bid should carry the scope, not a hope.
2. How should Addendum 3 and the subcontractor qualification letters be handled in the bid, and what should the estimator request from the mechanical subcontractor before 2:00 p.m. Friday?
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Acknowledge Addendum 3 on the bid form and price its changes: the door count is now 46 rated and 38 non-rated, and card readers were added at eight doors. Do not bid the pre-addendum scope. For the firestopping sub, either obtain a revised bid that includes head-of-wall sealants or add $9,600 to the estimate. A qualification letter that excludes scope is not a firm bid for that scope; the GC owns the gap if it uses the number without pricing the exclusion.
For mechanical, send a written scope request before the deadline asking: Are temperature controls included? Who provides the control panels, sensors, and wiring? Does the bid exclude permits, testing, balancing, or controls integration? If the sub will not confirm inclusion in writing, carry the controls in the GC's estimate or use another bid. Do not rely on a verbal assurance that 'controls are by others' without knowing who the other party is and what the GC's contract requires. The bid should include a written scope matrix showing each exclusion and where it is priced.
3. If the $118,000 error is discovered after the bid is submitted and the owner has not yet awarded, what facts determine whether North Fork can withdraw its bid without forfeiting its bid bond?
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Bid mistake withdrawal depends on whether the error is a clerical mistake, whether it is material, whether the bidder gave prompt notice, and whether the owner would be prejudiced. North Fork must document the error, notify the owner in writing immediately, and ask to withdraw before award. If the mistake is a mathematical error apparent on the face of the bid, many owners must allow withdrawal. If it is a judgment error or not apparent from the bid documents, the owner may refuse, and the bid bond can be forfeited.
Do not attempt to 'correct' the bid after opening without the owner's consent. The $118,000 masonry error is large enough to be material, but the company should also check whether the bid form allows unit-price correction or withdrawal for error. Prompt notice and clear documentary proof are the best protection; waiting until after award weakens the claim and may be treated as accepting the contract at the mistaken price.