Rejection of All Bids What are the reasons that a local contracting unit can reject all bids?
• Lowest bid substantially exceeds cost estimates; • Lowest bid substantially exceeds appropriation; • Governing body abandons the project; • Contracting unit wants to substantially revise the bid specifications; • Purpose and/or provisions of the LPCL and PSCL are violated; or • Governing body opts to use the state contract Among the criteria to reject all bids are that (1) the bid exceeds the project estimate, or (2) the bid exceeds the appropriation. Doesn t the project estimate have to equal the appropriation? No, the project estimate is independent of the appropriation. The appropriation is part of the budget process, whereas the project estimate is part of the project design. It is possible that the project is part of a multipurpose bond. Therefore, the estimate and appropriation would not always match. It is also possible that the appropriation is made six months prior to bidding for the project. During that time period, the cost of material or labor could have risen and additio
Related Questions
- Among the criteria to reject all bids are that (1) the bid exceeds the project estimate, or (2) the bid exceeds the appropriation. Doesn’t the project estimate have to equal the appropriation?
- Rejection of All Bids What are the reasons that a local contracting unit can reject all bids?
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