CE Practice Exam 3 Case Study 1 Question 65

Hi
I hope someone can explain this question.
A school district is required to take the lowest bid for the project. I can’t find where shows the alternate bid is deduct alternate. I attached the bid form too. Can anyone tell me how to find where shows the York chiller is deduct alternate please?

Which contractor should be awarded the contract if the owner decides to take the York chiller alternate?

Contractor 3
Correct. Contractor 3 provided a base bid of $133,888, and a deduct alternate of $7,888 for the York chiller. Therefore, if taking the York chiller alternate, their total bid is $126,000, which is the lowest bid presented.

Contractor 1
Incorrect. Contractor 1 has a base bid of $132,000, with a reduction of $5,000 if taking the York Chiller alternate. This makes the total bid price with alternate $127,000, which is not the lowest bid.

Contractor 5
Incorrect. Contractor 5 has the highest bid and should not be awarded the project.

Contractor 4
Incorrect. Contractor 4 did not provide an alternate price for the chiller, therefore their base bid of $139,487 is not the lowest bid.

Hi @lisi !

Thanks for your question! Because the scenario says that the district has a preferred chiller in mind but they’re willing to look at other recommendations from the contractor, this shows that the contractor is pricing more inexpensive chillers to lower the bid price. The contractor wouldn’t include a chiller in their bid that would add to the bid cost, further lessening their chances of winning the bid. The preferred chiller is included in the base bid, however the York Chiller is an alternate that would allow the district to save money and that deduct money is included in the bid form. Thanks!

-Rebecca