Common use of Unbalanced Clause in Contracts

Unbalanced. Bid Analysis 1. An unbalanced bid analysis will be performed under two circumstances: - If the department becomes aware of an error in a quantity of an item shown in the bidding documents. - If an item is found to be both significant to the contract and significantly unbalanced. 2. An individual item will be considered significant to the contract if any bidder has an item included in the proposal where the difference between the total cost of the item and the estimate, expressed as a percent of the estimated total contract cost, is greater than 0.50% for contracts less than $2,000,000 and greater than 0.25% for contracts $2,000,000 and larger. 3. An item will be considered significantly unbalanced if the difference between the low bidder's unit price and the estimate, expressed as a percent of the estimate, is greater than +50% or is less than -75%. 4. The unbalanced bid analysis must consist of the following steps: 4.1 The estimated unit price for items identified as being significantly unbalanced will be reviewed for correctness. Corrections will be made as needed and the low bidder's unit price will be reevaluated to determine if the item remains significantly unbalanced (see item #3). 4.2 Quantities for items found to be significant to the contract will be checked and verified. Quantities will be determined based upon the bidding documents and the construction methodologies depicted in the plan. These quantities will be used only for the purpose of performing the Unbalanced Bid Analysis. 4.3 Corrected quantities for items known to be in error (see item #3) plus corrected quantities for items significant to the contract will then be multiplied times the unit price bid for each contractor and a gross sum for the contract for each bidder will be calculated. 4.4 A comparison of the calculated gross sum totals will be made. If the calculated gross sum for the contract low bid is found to be higher than the calculated gross sum of another bidder, the low contract bid proposal is materially unbalanced. If the calculated gross sum of the contract low bid proposal is found to be less than the calculated gross sum of all other bidders, that bid is not materially unbalanced. 4.5 The comparison procedure explained in 4.4 above will be repeated as necessary using the next low contract bid proposal until a contract bid that is not materially unbalanced is found. 5. If the initial contract low bid proposal is found to be not materially unbalanced, the contract will be considered for award at the bid contract amount in accordance to the standard specifications. The contract will be based upon the bid amount and the quantities shown in the bidding documents. 6. If the initial low bid contract proposal is found to be materially unbalanced it will be considered irregular and will be rejected as non-responsive as reasonable doubt exists that the bid does not represent the lowest cost to the department. 7. If the initial low bid contract proposal is found to be materially unbalanced and rejected, the department may award to the next low bid contract proposal at the bid contract amount or may elect to reject all bids and re-let. Decisions will be made in the public interest and will consider consequences of re-letting the project.

Unbalanced. Bid Analysis 1. An unbalanced bid analysis will be performed under two circumstances: - If the department becomes aware of an error in a quantity of an item shown in the bidding documents. - If an item is found to be both significant to the contract and significantly unbalanced. 2. An individual item will be considered significant to the contract if any bidder has an item included in the proposal where the difference between the total cost of the item and the estimate, expressed as a percent of the estimated total contract cost, is greater than 0.50% for contracts less than $2,000,000 and greater than 0.25% for contracts $2,000,000 and larger. 3. An item will be considered significantly unbalanced if the difference between the low bidder's ’s unit price and the estimate, expressed as a percent of the estimate, is greater than +50% or is less than -75%. 4. The unbalanced bid analysis must consist of the following steps: 4.1 The estimated unit price for items identified as being significantly unbalanced will be reviewed for correctness. Corrections will be made as needed and the low bidder's unit price will be reevaluated to determine if the item remains significantly unbalanced (see item #3). 4.2 Quantities for items found to be significant to the contract will be checked and verified. Quantities will be determined based upon the bidding documents and the construction methodologies depicted in the plan. These quantities will be used only for the purpose of performing the Unbalanced Bid Analysis. 4.3 Corrected quantities for items known to be in error (see item #3) plus corrected quantities for items significant to the contract will then be multiplied times the unit price bid for each contractor and a gross sum for the contract for each bidder will be calculated. 4.4 A comparison of the calculated gross sum totals will be made. If the calculated gross sum for the contract low bid is found to be higher than the calculated gross sum of another bidder, the low contract bid proposal is shall be determined to be materially unbalanced. If the calculated gross sum of the contract low bid proposal is found to be less than the calculated gross sum of all other bidders, that bid is shall be determined to be not materially unbalanced. 4.5 The comparison procedure explained in 4.4 above will be repeated as necessary using the next low contract bid proposal until a contract bid that is found to be not materially unbalanced is foundunbalanced. 5. If the initial contract low bid proposal is found to be not materially unbalanced, the contract will be considered for award at the bid contract amount in accordance to the standard specificationsStandard Specifications. The contract will be based upon the bid amount and the quantities shown in the bidding documents. 6. If the initial low bid contract proposal is found to be materially unbalanced it will be considered irregular and will be rejected as non-responsive as reasonable doubt exists that the bid does not represent the lowest cost to the departmentDepartment. 7. If the initial low bid contract proposal is found to be materially unbalanced and rejected, the department Department may award to the next low bid contract proposal at the bid contract amount or may elect to reject all bids and re-let. Decisions will be made in the public interest and will consider consequences of re-letting the project.

Unbalanced. Bid Analysis 1. An unbalanced bid analysis will be performed under two circumstances: - If the department becomes aware of an error in a quantity of an item shown in the bidding documents. - If an item is found to be both significant to the contract and significantly unbalanced. 2. An individual item will be considered significant to the contract if any bidder has an item included in the proposal where the difference between the total cost of the item and the estimate, expressed as a percent of the estimated total contract cost, is greater than 0.50% for contracts less than $2,000,000 and greater than 0.25% for contracts $2,000,000 and larger. 3. An item will be considered significantly unbalanced if the difference between the low bidder's unit price and the estimate, expressed as a percent of the estimate, is greater than +50% or is less than -75%. 4. The unbalanced bid analysis must consist of the following steps: 4.1 The estimated unit price for items identified as being significantly unbalanced will be reviewed for correctness. Corrections will be made as needed and the low bidder's unit price will be reevaluated to determine if the item remains significantly unbalanced (see item #3). 4.2 Quantities for items found to be significant to the contract will be checked and verified. Quantities will be determined based upon the bidding documents and the construction methodologies depicted in the plan. These quantities will be used only for the purpose of performing the Unbalanced Bid Analysis. 4.3 Corrected quantities for items known to be in error (see item #3) plus corrected quantities for items significant to the contract will then be multiplied times the unit price bid for each contractor and a gross sum for the contract for each bidder will be calculated. 4.4 A comparison of the calculated gross sum totals will be made. If the calculated gross sum for the contract low bid is found to be higher than the calculated gross sum of another bidder, the low contract bid proposal is shall be determined to be materially unbalanced. If the calculated gross sum of the contract low bid proposal is found to be less than the calculated gross sum of all other bidders, that bid is shall be determined to be not materially unbalanced. 4.5 The comparison procedure explained in 4.4 above will be repeated as necessary using the next low contract bid proposal until a contract bid that is found to be not materially unbalanced is foundunbalanced. 5. If the initial contract low bid proposal is found to be not materially unbalanced, the contract will be considered for award at the bid contract amount in accordance to the standard specifications. The contract will be based upon the bid amount and the quantities shown in the bidding documents. 6. If the initial low bid contract proposal is found to be materially unbalanced it will be considered irregular and will be rejected as non-responsive as reasonable doubt exists that the bid does not represent the lowest cost to the department. 7. If the initial low bid contract proposal is found to be materially unbalanced and rejected, the department may award to the next low bid contract proposal at the bid contract amount or may elect to reject all bids and re-let. Decisions will be made in the public interest and will consider consequences of re-letting the project.