Contracts & ExecutionQuestion 172 of 690
A contractor discovers a $20,000 arithmetic error in its bid one hour after submitting it, before any contract is signed. The contractor's BEST course of action is to:
a.Sign the contract anyway and absorb the loss silently
b.Promptly notify the owner in writing of the mistake and request to withdraw or correct the bid
c.Sign the contract and reduce the quality of materials to recover the error
d.Ignore it because bids cannot be changed once submitted
Explanation
A genuine, promptly disclosed clerical or arithmetic error generally allows a bidder to withdraw or correct the bid before contract formation. Proceeding with deficient work or hidden corner-cutting would violate license law.
Practice all 690 questions free — no signup required.
Related questions on this topic
- A job was estimated at $40,000 in labor but actual labor came in at $48,000. This $8,000 difference is BEST described as:
- When a general contractor relies on a subcontractor's bid to prepare its prime bid, the sub generally:
- The practice of a general contractor revealing one subcontractor's bid to a competitor to obtain a lower price is called:
- In project organization, the document that defines exactly what work is and is NOT included in a contract is the:
- A "punch list" near the end of a project is:
- "Substantial completion" of a construction project generally means:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review