Article Date: 09/18/2006

BE ALERT WITH UNBALANCED BIDDING

When a bid schedule divides work into separate line items or components, a contractor may be tempted to unbalance its bid. An unbalanced bid is one in which direct cost, indirect cost and profit are not allocated proportionately among the various items of work. An unbalanced bid offers potential advantages, but it also creates risk.

Unbalancing

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