An electrical installation has an approved maximum budget of P1,180,000 with no adjustments. The Bids and Awards Committee will choose the lowest bid from all the bidders. The project is set to have a 1-month duration and your company have enough manpower to undertake this. The scope of the work includes the materials, labor and all relevant works involved. The base material cost is at P 455,000 while the labor is at P300,000. The profit is set at 13% while Permits and Inspection Fees is at P 50,000. If the supervision cost is at 13% based on the labor cost, the transportation, insurance and incidentals are 4%, 5% and 7% respectively while the overhead is set at 4% and the taxes at 5%, Required:

a.) Will you bid on the project? Why or Why Not? Justify your answer properly b.) If yes, what will be your final bid amount?