Asking for the Right Price for Alternate Bid Work

If you include an Alternate Bid on the bid form for a public works construction project, it is important to make sure you are clear in your instructions to bidders for what price to include on the bid form.

There are potentially two different kinds of Alternate Bids. In one case you may be simply asking for the price for a body of work above and beyond the work described in the base bid. Technically, this should be called an Additive Bid, but some public agencies call them Alternate Bids. In a situation where the work is above and beyond the base bid work, it's okay to just ask for the price of the Alternate Bid.

If, however, the Alternate Bid is a request for pricing to provide a different material or method in lieu of what is described in the base bid, it is important to specify that what you what bidders to note on the bid form is the differential price between the cost included in the base bid and the cost to provide the Alternate Bid work.

If you don't specify that you want the differential price, you may get bidders submitting bids on an unequal basis. Some will interpret that you want the differential price, while others may include the complete price of the Alternate Bid, thereby double charging for the work (some cost in the base bid and all costs in the Alternate Bid).