State Board Affirms Agency Rejection of Unbalanced Bid

摘要

As Most Readers know, unbalanced bidding occurs when a contractor fails to properly allocate direct and indirect costs and profit among various line items of work. When a bid schedule includes line items of estimated quantities for unit-priced work, the bidder can ultimately decide whether these quantities are understated or overstated. In essence, the bidder then inflates the unit price of the understated items while reducing the price of the overstated items without affecting the total bid price. If its expectation regarding actual quantities proves correct, the contractor will reap a windfall.