If a general contractor discovers a subcontractor's bid is substantially lower than the others, is it ethical to inform the subcontractor of the apparent error?

If a general contractor discovers a subcontractor's bid is substantially lower than the others, is it ethical to inform the subcontractor of the apparent error?

• A. No, unethical.
• B. Yes, if there is reason to believe the subcontractor made an error.
• C. Yes, if there is an apparent error, notify the subcontractor of the apparent error, but do not disclose the amounts of the other bids.
• D. Yes, disclose all bid amounts to the subcontractor.

Answer: (C)

Ethical handling of bid errors is the idea here. When a subcontractor’s bid looks substantially lower than the others, it’s appropriate to inform them that an apparent error may exist and request they review their numbers. This helps prevent a project from proceeding on a mispriced bid and protects both the client and the bidder from later issues caused by arithmetic mistakes or scope misunderstandings. At the same time, you should keep the other bids confidential and not disclose their amounts. Revealing competitors’ prices can distort the bidding process, create unfair pressure, and raise concerns about confidentiality and integrity. So, the best approach is to flag an apparent error to the subcontractor and give them a chance to verify or correct it, without sharing rival bid amounts.

Ethical handling of bid errors is the idea here. When a subcontractor’s bid looks substantially lower than the others, it’s appropriate to inform them that an apparent error may exist and request they review their numbers. This helps prevent a project from proceeding on a mispriced bid and protects both the client and the bidder from later issues caused by arithmetic mistakes or scope misunderstandings.

At the same time, you should keep the other bids confidential and not disclose their amounts. Revealing competitors’ prices can distort the bidding process, create unfair pressure, and raise concerns about confidentiality and integrity.

So, the best approach is to flag an apparent error to the subcontractor and give them a chance to verify or correct it, without sharing rival bid amounts.