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Post
Bid Negotiations
Both AIA and AGC recommend: "Under no circumstances should a
bidder be permitted to alter a bid after all bids have been opened
unless it is the apparent low bid and the owner desires to negotiate
minor changes. If major changes are necessary, the original bids should
normally be rejected and new bids secured from the original list of
bidders based on revised contract documents." A qualified bid, by
its nature, contemplates negotiation of scope not afforded other
bidders.
A recent trend that has afflicted the public work construction
marketplace is post-bid negotiation. Faced with the potential for a
project over budget and in need of redesign and rebid, designers and
owners are opting instead to negotiate scope and price with the low
bidders. Such a practice is in clear violation of law and places at risk
the capital of contractors and owners. While it is acceptable to
negotiate downward the price with the low bidder, any discussions of
scope change make the contract illegal on its face. It should be noted
also, entering into a contract with the anticipation that a scope change
and change order will be executed later is also improper.
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