Construction Management Practice Exam

Question: 1 / 400

Regarding bid alternates priced by contractors, what is the result when they are accepted by the owner?

Lead to a decrease in contract efficiency

Eliminate the need for further bidding

Do not affect the contract sum

Lead to an increase in the contract sum

When bid alternates are accepted by the owner, they typically result in an increase in the contract sum. Bid alternates are options provided by contractors that allow the owner to choose different scopes of work, materials, or methods, which can affect the overall project budget. When an owner accepts one or more of these alternates, they are essentially agreeing to additional work or modifications that were not included in the base bid.

This acceptance means that the contractor will be compensated for these extra costs, leading to an overall increase in the contract sum. It's important for construction managers and owners to clearly understand the implications of accepting such alternates, as they can impact not only the budget but also the project timeline and scope. In comparison to the other options, this is a direct and typical consequence of accepting bid alternates, thus reinforcing the value of strategic decision-making in project management.

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