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SC General Contractor practice questions

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Question 1Business and Project Management

In the critical path method, the critical path is best described as:

  1. the longest dependent sequence, which sets the shortest project duration Correct answer.
  2. the path containing the greatest number of activities in the whole network
  3. the set of activities the owner has designated as the highest priority items
  4. any sequence of activities with the lowest total direct cost

Explanation

The critical path is the longest path through the activity network, so its total duration equals the shortest time in which the project can be finished. Every activity on it has zero total float, meaning any slippage delays completion. Paths with many activities or low cost are not automatically critical.

Question 2Business and Project Management

Total float on a scheduled activity is the amount of time:

  1. allowed for the contractor to submit shop drawings for review
  2. an activity can slip without delaying project completion Correct answer.
  3. an activity can slip without raising its direct labor cost
  4. the owner has to extend the contract without extra payment

Explanation

Total float is the difference between the late and early finish (or start) dates of an activity, measured against the project completion date. Consuming float does not affect the completion date until float reaches zero. Cost impact and review periods are separate scheduling issues.

Question 3Business and Project Management

A written change order is used primarily to:

  1. replace the original contract documents once construction begins
  2. document an agreed modification to scope, price, or time Correct answer.
  3. notify a subcontractor that its bid has been accepted
  4. record the contractor's internal estimate of work in place

Explanation

A change order is a signed modification to the contract that records the agreed adjustment in scope, contract sum, or contract time. It becomes part of the contract documents and authorizes the work. Internal estimates and bid awards are handled through other instruments.

Question 4Business and Project Management

Retainage withheld from progress payments is intended mainly to:

  1. prepay the contractor's insurance and bond premiums
  2. fund the owner's construction contingency account
  3. protect the owner until the work is complete and accepted Correct answer.
  4. cover the contractor's permit and inspection fees

Explanation

Retainage holds back a percentage of earned progress payments so the owner has leverage and funds available to see that incomplete or defective work is corrected. It is released according to the contract, typically at substantial and final completion. It is not a contingency fund or a fee payment mechanism.

Question 5Business and Project Management

A bid bond on a public project typically:

  1. replaces the contractor's general liability insurance
  2. guarantees subcontractors will be paid for their labor
  3. guarantees the contractor will complete the physical work
  4. guarantees the bidder will enter the contract if awarded Correct answer.

Explanation

A bid bond assures the owner that a low bidder will execute the contract and furnish the required performance and payment bonds. If the bidder defaults, the surety pays the owner the difference up to the bond penalty. Completion and payment are covered by separate bonds.

Question 6Business and Project Management

Which bond protects subcontractors and material suppliers on a project?

  1. performance bond
  2. payment bond Correct answer.
  3. bid bond
  4. maintenance bond

Explanation

A payment bond guarantees that the contractor will pay subcontractors, laborers, and suppliers, giving them a remedy against the surety. A performance bond responds to the owner for failure to complete the work. Bid and maintenance bonds serve different purposes.

Question 7Business and Project Management

Under South Carolina law, an employer generally must carry workers' compensation coverage once it regularly employs:

  1. one or more employees
  2. fifty or more employees
  3. two or more employees
  4. four or more employees Correct answer.

Explanation

South Carolina requires workers' compensation coverage for employers who regularly employ four or more persons, and part-time employees count toward that total. Below that threshold coverage is optional unless the employer elects to be covered. Failure to carry required coverage can result in penalties and stop-work orders.

Question 8Business and Project Management

In South Carolina, a general contractor's license is generally required for construction projects valued at:

  1. $5,000 or more Correct answer.
  2. $2,500 or more
  3. $25,000 or more
  4. $500 or more

Explanation

South Carolina's contractor licensing law applies to general contracting work of $5,000 or more, and specialty work such as electrical, plumbing, and mechanical is licensed at the same threshold. Working above the threshold without a license exposes the contractor to penalties and can affect the enforceability of contracts. Lower dollar amounts are used in some other states, not South Carolina.

Question 9Business and Project Management

The South Carolina Contractor's Licensing Board is administered by which state agency?

  1. Department of Labor, Licensing and Regulation Correct answer.
  2. Department of Transportation
  3. Department of Commerce
  4. Department of Health and Environmental Control

Explanation

The Contractor's Licensing Board is a professional and occupational licensing board housed within the Department of Labor, Licensing and Regulation (LLR). LLR handles applications, examinations, and disciplinary actions for licensed contractors. The other agencies have permitting or economic development roles but do not license contractors.

Question 10Business and Project Management

The schedule of values submitted with a pay application should:

  1. list crew names and hourly rates for the pay period
  2. match the owner's project budget line for line
  3. allocate the contract sum across the work items performed Correct answer.
  4. show the contractor's equipment depreciation for the month

Explanation

The schedule of values breaks the contract sum into work items so that completed percentages can be measured and paid fairly. It must total the contract sum and be approved by the design professional before it is used for billing. Payroll detail and equipment depreciation are supporting cost records, not the basis of the schedule.

Question 11Business and Project Management

A contractor's monthly pay application is normally certified by:

  1. the owner's lending institution
  2. the local building official
  3. the surety company's underwriter
  4. the architect or engineer administering the contract Correct answer.

Explanation

The design professional observes the work, reviews the application against the schedule of values, and certifies the amount due to the owner for payment. This certification is a professional judgment on the quantity and quality of work in place. Lenders and officials rely on that certification but do not issue it.

Question 12Business and Project Management

Liquidated damages in a construction contract are:

  1. a penalty imposed only when the contractor acts in bad faith
  2. damages paid to the contractor for owner-caused delays
  3. the actual costs the owner later proves in court
  4. a preset sum agreed for each day of late completion Correct answer.

Explanation

Liquidated damages are a fixed amount stated in the contract for each day of delay beyond the contract time, agreed in advance to avoid proving actual loss. To be enforceable the amount must be a reasonable forecast of probable harm rather than a penalty. Owner-caused delay damages run in the other direction.

Question 13Business and Project Management

A request for information (RFI) is used mainly to:

  1. order a subcontractor to redo nonconforming work
  2. propose a substitution for a specified product
  3. submit the contractor's monthly billing for payment
  4. get clarification of the contract documents during construction Correct answer.

Explanation

An RFI asks the design professional to clarify an ambiguity, conflict, or missing detail in the contract documents, and the written answer becomes part of the record. It is a communication tool, not an approval of a substitution or a directive to correct work. Keeping RFIs numbered and logged helps support later change orders and claims.

Question 14Business and Project Management

Submittals are reviewed by the design professional mainly to:

  1. approve the contractor's proposed schedule of values
  2. check that proposed materials meet the specification Correct answer.
  3. certify that the contractor is properly licensed
  4. authorize payment for stored materials on site

Explanation

Shop drawings, product data, and samples are submitted so the design professional can verify that the materials and equipment the contractor proposes conform to the design concept and specifications. Review is generally for conformance and does not relieve the contractor of responsibility for dimensions or field fit. Payment and licensing are separate processes.

Question 15Business and Project Management

Substantial completion is best described as the point when:

  1. the owner has paid the full contract sum to the contractor
  2. the architect issues the final certificate for payment
  3. the work can be used for its intended purpose, minor items aside Correct answer.
  4. the last subcontractor has demobilized from the site

Explanation

Substantial completion occurs when the work is sufficiently complete for its intended use, even though punch list items and minor corrections remain. It typically starts warranty periods, shifts insurance and utility responsibilities, and releases most retainage. Final payment and full demobilization come later.

Question 16Business and Project Management

Record (as-built) drawings are used to:

  1. show the design team's original design intent
  2. list the contractor's proposed means and methods
  3. show the installed conditions, including field changes Correct answer.
  4. document the punch list items and their status

Explanation

Record drawings are marked up during construction to reflect actual installed locations, dimensions, and approved field changes, then turned over at closeout. Owners use them for future maintenance, renovations, and locating concealed utilities. They supplement rather than replace the original contract drawings.

Question 17Business and Project Management

Compared with a lump-sum contract, a cost-plus contract places which risk primarily on the owner?

  1. the risk of design errors
  2. the risk of permit delays
  3. the risk of labor availability
  4. the risk of cost overruns Correct answer.

Explanation

Under cost-plus, the contractor is reimbursed for actual costs plus an agreed fee, so increases in cost flow through to the owner. In a lump-sum contract the contractor commits to a fixed price and absorbs cost growth within the defined scope. Both parties still share exposure to design and regulatory issues.

Question 18Business and Project Management

A unit-price contract is most suitable when:

  1. the owner wants a guaranteed maximum price up front
  2. the scope is fully defined and unlikely to change
  3. the project must be fast-tracked with early awards
  4. quantities of work are uncertain but can be measured Correct answer.

Explanation

Unit-price contracting pays a fixed rate per measured unit, so it fits work such as earthwork or paving where quantities are uncertain but can be field-measured. The owner pays for actual quantities installed at the stated rate. Fully defined scope suits lump sum, and a guaranteed maximum price is a separate cost arrangement.

Question 19Business and Project Management

A lien waiver signed by a subcontractor in exchange for payment:

  1. guarantees the subcontractor will finish on schedule
  2. releases the owner from all future defect claims
  3. transfers the subcontractor's contract to the owner
  4. gives up lien rights for the amount paid Correct answer.

Explanation

A lien waiver is a written surrender of the right to file a mechanics' lien for the work or materials covered by the payment received. Waivers are typically conditioned on actual receipt of funds and are matched to progress or final payments. They do not transfer contracts, waive warranty obligations, or guarantee performance.

Question 20Business and Project Management

In South Carolina, a mechanics' lien claim is generally filed with the clerk of court within how long after the last labor or material is furnished?

  1. 6 months
  2. 90 days Correct answer.
  3. 30 days
  4. 10 days

Explanation

South Carolina requires a mechanics' lien claim to be filed with the clerk of court within 90 days after the last furnishing of labor, services, or materials for the improvement. Missing the deadline generally forfeits the lien right. Suit to enforce the lien must then be brought within the statutory period after filing.

Question 21Business and Project Management

A general contractor uses a backcharge when a subcontractor:

  1. asks for a substitution for an unavailable material
  2. requests additional time because of weather delays
  3. submits a pay application ahead of the billing cycle
  4. defaults, so the GC performs the work and deducts the cost Correct answer.

Explanation

A backcharge shifts to the subcontractor the cost the general contractor incurs to correct or complete work the subcontractor failed to perform properly. The amount is documented and deducted from amounts otherwise due. Time requests, early billing, and substitutions are handled through other contractual procedures.

Question 22Business and Project Management

Before terminating a subcontractor for default, a contractor should normally:

  1. notify the surety and file a lien on the property
  2. obtain the owner's consent to a change order
  3. give written notice and an opportunity to cure Correct answer.
  4. immediately withhold all previously approved payments

Explanation

Subcontracts and the general conditions generally require written notice of the default and a stated period for the subcontractor to cure before termination. Following that procedure preserves the contractor's right to backcharge or use the subcontractor's surety. Withholding earned payments without cause could itself be a breach.

Question 23Business and Project Management

When owner-caused and contractor-caused delays occur at the same time, a common result is that:

  1. the owner may assess liquidated damages for the period
  2. the contractor receives extended time and delay costs
  3. the contractor may get a time extension but no delay costs Correct answer.
  4. the contract is automatically terminated for convenience

Explanation

In a concurrent delay, the contractor generally cannot recover extended general conditions or other delay costs for that period because the contractor would have been delayed anyway. Courts and boards commonly grant an extension of time to avoid liquidated damages while denying money. Neither party is treated as the sole cause.

Question 24Business and Project Management

South Carolina's occupational safety program (SC OSHA) covers:

  1. only employers that hold state contracts
  2. only federal government worksites located in the state
  3. only construction projects valued over $1 million
  4. most private and public sector employers in the state Correct answer.

Explanation

South Carolina operates a state plan approved by federal OSHA that applies to most private sector and state and local public sector employers. Enforcement, inspections, and consultations are run through the state program. Certain federal worksites and maritime activities remain under federal OSHA jurisdiction.

Question 25Business and Project Management

Project closeout typically requires the contractor to furnish:

  1. copies of subcontractor bid proposals
  2. warranties, final lien waivers, and O&M manuals Correct answer.
  3. the original bid documents and addenda
  4. a new performance bond for the warranty period

Explanation

Closeout deliverables generally include executed warranties, final lien waivers and affidavits, operating and maintenance manuals, record drawings, and training documentation. These items support final payment and release of retainage. Bonds and bid records are not resubmitted as closeout items.

Question 26Business and Project Management

On a project schedule prepared with the critical path method, the critical path is the sequence of activities that:

  1. contains every activity that has positive total float
  2. may be compressed without affecting the completion date
  3. has zero total float and drives the project finish date Correct answer.
  4. includes only the activities with the largest budgets

Explanation

CPM defines the critical path as the longest continuous chain of dependent activities through the network. Because activities on that chain have zero total float, a delay in any of them moves the project completion date.

Question 27Business and Project Management

A bid bond submitted with a construction bid primarily protects the owner against which risk?

  1. Defective work discovered after final acceptance
  2. Delay in completion beyond the contract completion date
  3. A subcontractor's failure to pay its material suppliers
  4. The low bidder failing to sign the contract and provide the required bonds Correct answer.

Explanation

A bid bond guarantees that if the bidder is awarded the work, it will execute the contract and furnish the required performance and payment bonds. If it refuses, the surety is liable up to the bond penalty, usually the difference to the next bidder.

Question 28Business and Project Management

The main purpose of withholding retainage from progress payments is to:

  1. fund the contractor's home office overhead during the project
  2. satisfy state licensing requirements for periodic payment
  3. provide security for completion and correction of defective work Correct answer.
  4. reduce the owner's construction financing costs

Explanation

Retainage holds back a percentage of each payment so the owner keeps leverage and funds in reserve until the work is complete and defects are corrected. It is released according to the contract, often in stages at substantial and final completion.

Question 29Business and Project Management

A punch list developed near the end of a construction project normally identifies:

  1. items of incomplete or defective work to be corrected Correct answer.
  2. the scheduled dates for each remaining pay application
  3. the change orders still awaiting the owner's approval
  4. the subcontractors who have not yet been paid in full

Explanation

The punch list is compiled during the final walkthrough and records incomplete or deficient work the contractor must correct before final acceptance and final payment. Completion of the listed items is typically a condition of closing out the project.

Question 30Business and Project Management

Under a standard owner-contractor agreement, a change order that modifies both the contract sum and the contract time must be executed by:

  1. the contractor's superintendent and the inspector
  2. the owner and the contractor Correct answer.
  3. the owner and the surety company
  4. the design professional and the contractor

Explanation

A change order is a written modification of the agreement, so it must be signed by the parties to that agreement, the owner and the contractor. The design professional typically recommends or prepares it but does not become a party to it.

Question 31Business and Project Management

In a cost-plus contract with a guaranteed maximum price, savings realized when the final cost comes in below the GMP are:

  1. retained entirely by the contractor in every case
  2. paid to the architect as additional compensation
  3. shared with or returned to the owner as the contract provides Correct answer.
  4. forfeited to the surety that issued the performance bond

Explanation

A GMP caps the owner's price exposure, and the contract's savings clause specifies how any shortfall below the cap is divided, often shared between owner and contractor. Without such a clause the owner generally receives the benefit of the savings.

Question 32Business and Project Management

When a contractor intends to seek additional compensation for a delay event, most construction contracts require the contractor to:

  1. wait until final payment to present the claim
  2. stop work until the owner agrees to the amount
  3. give written notice within a stated period Correct answer.
  4. submit the claim directly to the surety

Explanation

Contracts contain notice provisions that require written notice of a claim within a defined number of days after the event is first recognized. Missing the deadline can waive the claim regardless of its underlying merit.

Question 33Business and Project Management

Under a typical differing site conditions clause, a contractor that encounters unexpected subsurface conditions must:

  1. immediately terminate the excavation subcontractor
  2. absorb the added cost as a risk the contractor accepted
  3. continue the work and include the added cost in the next pay application
  4. notify the owner in writing before the condition is disturbed Correct answer.

Explanation

Differing site conditions clauses require the contractor to stop the affected work and give prompt written notice before the condition is disturbed so the owner and designer can investigate and direct a remedy. Failure to give notice can waive the contractor's right to an adjustment.

Question 34Business and Project Management

When a surety evaluates a contractor's maximum bonding capacity, the most significant factors are:

  1. financial strength, work history, and current backlog Correct answer.
  2. the number of employees and the size of the company's office space
  3. the contractor's advertising budget and share of the local market
  4. the number of bids the contractor submitted in the previous year

Explanation

Sureties underwrite the contractor's ability to perform and to reimburse the surety, so they analyze audited financial statements, past project performance, and the volume of uncompleted work already under contract. A large backlog without matching capital and capacity reduces available bonding.

Question 35Business and Project Management

When the owner changes the bid documents after invitations to bid have been issued, the change should be communicated by:

  1. a verbal instruction at the pre-bid conference
  2. a revised drawing given only to the low bidder
  3. a written addendum issued to all bidders Correct answer.
  4. a field order issued after the contract is signed

Explanation

Modifications to the bidding documents during the bid period must be issued in writing as an addendum to every bidder on record, and bidders must acknowledge receipt. This keeps all bids based on the same information.

Question 36Business and Project Management

Contractors covered by OSHA injury and illness recordkeeping rules must maintain which of the following?

  1. A daily equipment inspection log
  2. A list of every employee's certifications
  3. A payroll deduction register
  4. A log of work-related injuries and illnesses Correct answer.

Explanation

Covered employers must keep the OSHA Form 300 log of work-related injuries and illnesses, together with the annual summary and incident reports. Equipment logs and training records may be required by other standards but are not the injury recordkeeping requirement.

Question 37Business and Project Management

In the design-build delivery method, the owner:

  1. holds separate contracts with a designer and a builder
  2. contracts with a single entity for both design and construction Correct answer.
  3. must use a construction manager acting as the owner's agent
  4. awards the design contract before the construction contract

Explanation

Design-build gives the owner one contract with one entity that is responsible for both the design and the construction of the project. This single point of responsibility is the defining feature that separates it from design-bid-build.

Question 38Business and Project Management

A cost-loaded schedule shows a cost performance index of 0.85 and a schedule performance index of 1.10. Which statement best describes the project?

  1. Ahead of schedule and under budget
  2. Ahead of schedule but over budget Correct answer.
  3. Behind schedule and over budget
  4. Behind schedule and under budget

Explanation

A cost performance index below 1.00 means the work performed has cost more than planned, so the project is over budget. A schedule performance index above 1.00 means earned value exceeds planned value, so the work is ahead of schedule.

Question 39Business and Project Management

Constructive acceleration occurs when a contractor:

  1. must speed up after the owner denies a valid time extension Correct answer.
  2. recovers lost time by working overtime at its own expense
  3. speeds up work voluntarily to earn an early completion bonus
  4. adds crews because the owner issued a written acceleration directive

Explanation

Constructive acceleration arises when the contractor is entitled to a time extension, the owner refuses or fails to act on the request, and the contractor nevertheless must spend extra money to finish by the original date. The contractor can then recover the acceleration cost as a claim.

Question 40Business and Project Management

A flow-down clause in a subcontract has the effect of:

  1. binding the subcontractor to applicable prime contract terms Correct answer.
  2. transferring the prime contract's payment terms to the owner
  3. allowing the subcontractor to negotiate directly with the owner
  4. releasing the contractor from its obligations to the owner

Explanation

Flow-down, or incorporation by reference, clauses make the prime contract provisions that relate to the subcontracted work binding on the subcontractor. This extends obligations such as notice, insurance, and safety requirements down the contracting chain.

Question 41Contract Administration and Bidding

On a competitively bid project, what is the primary purpose of the bid security (bid bond) submitted with a contractor's bid?

  1. To ensure the successful bidder signs the contract and furnishes the required bonds Correct answer.
  2. To insure completed work against defects in materials and workmanship
  3. To pay subcontractors, suppliers, and labor if the contractor defaults during construction
  4. To reimburse the owner for design errors discovered after bid opening

Explanation

Bid security protects the owner against a bidder that is awarded the contract but then refuses to execute the agreement or to provide the required performance and payment bonds. If the bidder defaults at that stage, the owner may recover the bond amount, usually limited to the difference between the defaulting bid and the next lowest bid. Bid security is not insurance, not a payment bond, and not a remedy for design errors.

Question 42Contract Administration and Bidding

How is a bidder normally required to acknowledge receipt of an addendum issued during the bidding period?

  1. By notarizing the addendum and returning it to the architect
  2. By attaching a separate cover letter to the sealed bid
  3. By listing the addendum number on the bid form Correct answer.
  4. By enclosing a complete copy of the addendum in the bid envelope

Explanation

Bid forms almost always include a line on which the bidder lists each addendum received, and that entry is how the bid is made responsive to the amended requirements. Acknowledgment on the bid form itself keeps the record clear and lets the owner verify that every bidder priced the same information. Informal methods do not satisfy the solicitation's stated requirement.

Question 43Contract Administration and Bidding

At a public bid opening for a government project, which information is normally read aloud and recorded?

  1. The name of each bidder and the total base bid amount Correct answer.
  2. The contractor's proposed schedule of values for the work
  3. Each contractor's estimate of its subcontractors' costs
  4. The bidder's financial statements and bonding capacity

Explanation

The purpose of a public opening is to establish, in front of witnesses, who bid and at what price, so the record cannot be altered afterward. Only the identifying information and the prices called for on the bid form, including alternates if requested, are announced. Supporting financial and cost data are not read out.

Question 44Contract Administration and Bidding

A change order that modifies the contract sum or the contract time must normally be signed by which parties?

  1. The superintendent and the architect as the owner's representative
  2. The owner and the contractor, with the architect's certification or recommendation Correct answer.
  3. The owner and the subcontractors whose work is affected
  4. The architect and the general contractor, but only when extra work is involved

Explanation

A change order amends the contract, so it requires the signatures of the two contracting parties: the owner and the contractor. The architect's role is to prepare and certify the change, but the architect's signature alone does not commit the owner's money. Subcontractors and superintendents are not parties to the prime contract and cannot bind it.

Question 45Contract Administration and Bidding

In construction contracting, retainage is best described as:

  1. The unpaid balance of a subcontractor's final invoice after offset
  2. A fee charged by the architect for processing pay applications
  3. A percentage withheld from progress payments until the work is complete Correct answer.
  4. A deposit paid by the contractor to guarantee its bid

Explanation

Retainage is a stated percentage of each progress payment that the owner holds back as security for completion and for correcting deficiencies. It is released according to the contract, often partly at substantial completion and the balance at final completion. It is not a bid deposit, an ordinary unpaid invoice, or a design fee.

Question 46Contract Administration and Bidding

On a commercial building project, a submittal is best described as:

  1. A request from the contractor for additional compensation
  2. Information the contractor submits to the design professional for review Correct answer.
  3. The owner's written authorization to proceed with a portion of the work
  4. A schedule showing when each subcontractor will mobilize and complete its work

Explanation

Submittals are the shop drawings, product data, samples, and similar information the contractor transmits to the design professional to demonstrate that the proposed materials and equipment conform to the contract documents. The review is for conformance with the design concept, not a transfer of design responsibility. Submittals are distinct from pay requests, schedules, and authorizations to proceed.

Question 47Contract Administration and Bidding

Liquidated damages in a construction contract represent:

  1. An agreed per-day amount of damages for delay beyond the contract time Correct answer.
  2. Punitive damages assessed against a contractor for willful delay
  3. A bonus the owner pays to the contractor when the project is finished early
  4. The cost of repairing defective work discovered after acceptance

Explanation

Liquidated damages are a sum the parties agree in advance will represent the owner's loss for each day of unexcused delay, avoiding the need to prove actual damages. Because they are a pre-estimate rather than a punishment, they must bear a reasonable relationship to anticipated harm to be enforceable. They are separate from correction costs and from early completion bonuses.

Question 48Contract Administration and Bidding

Substantial completion is generally defined as the stage at which:

  1. The work is complete enough for the owner's intended use, with minor items remaining Correct answer.
  2. Every punch list item has been corrected and accepted by the architect
  3. The owner has issued final payment and closed out the contract
  4. The warranty period has fully expired and the surety is released

Explanation

Substantial completion marks the point at which the work is sufficiently complete in accordance with the contract documents that the owner can occupy or use it for its intended purpose. Only minor, punch-list-type work and corrections remain at that point. This milestone triggers warranty start, retainage reduction, and the running of certain claim periods.

Question 49Contract Administration and Bidding

A bid contains both a lump sum and a unit price covering the same item of work, and the two figures conflict. Under standard bidding rules, which governs?

  1. The unit price Correct answer.
  2. The lump sum, because it reflects the total price offered
  3. The bid must be rejected as nonresponsive
  4. Whichever figure is lower for the owner

Explanation

Standard bid forms state that unit prices govern over lump sums and over extended totals, because the unit price is the measured basis on which the item will actually be paid. This rule lets the owner correct arithmetic extensions without renegotiating the price. The conflict is a clerical matter that the stated order of precedence resolves.

Question 50Contract Administration and Bidding

A bidder discovers an unintentional clerical error in its bid shortly after bid opening. Under standard practice, the bidder may be relieved only if:

  1. The bidder submits a withdrawal letter after the contract has already been signed
  2. The bidder immediately submits a corrected, higher bid
  3. The owner's independent cost estimate confirms the bid is too low
  4. The bidder gives prompt written notice and clear evidence of the error Correct answer.

Explanation

Relief from a bid mistake requires that the bidder act promptly and prove the error by objective evidence, such as the original work papers showing a transposition or omission. The owner then verifies the claimed mistake before permitting withdrawal or correction. Unsupported assertions or unilateral revisions after opening are not accepted.