Construction Management Practice Exam

When bid alternates are accepted by the owner, this typically results in an increase in the contract sum. Bid alternates are options presented by a contractor that allow the owner to choose additional work or different materials/standards which affect the overall project. Each alternate is priced separately, so when the owner accepts one or more of these options, it directly impacts the total cost of the contract. The acceptance of bid alternates means that the owner has decided to incorporate additional features or changes into the project scope, which inherently requires additional financial resources. This increase reflects the contractor's pricing for these alternates, which is calculated based on the added labor, materials, and potential overhead or profit associated with the additional work. Thus, the acceptance leads to a higher overall project budget than initially proposed without those alternates. Overall, the impact of accepting bid alternates emphasizes the owner’s discretion in enhancing the project while also acknowledging the financial implications that come with such choices.