Contracts & ExecutionQuestion 172 of 1605
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.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)