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Prior to finalizing the project guaranteed maximum price GMP, The general contractor, Allied Constructors requested estimating assistance from one of their regular, and reliable, subcontractors
Prior to finalizing the project guaranteed maximum price GMP, The general contractor, Allied Constructors requested estimating assistance from one of their regular, and reliable, subcontractors for the specialized work of laboratories and clean rooms. Allied subsequently took bids on the work and determined that the preferred subcontractor's price was $841,000. The low price, from a less than a reputable contractor, was $801,000, a difference of $40,000. Allied has two options. They can go with the subcontractor with whom they are more familiar, who had proven their competence and quality on previous projects and had helped Allied develop pricing for the project, or they can go with the low bidder. 1. Are there variables, other than price, that should be considered in making the final selection? Is it ethical to award to the second bidder? 2. Can Allied renegotiate with the preferred subcontractor? Is this ethical? Please follow these steps: 1. Click on the title of "Discussion Cost Estimate" 2. Click start a new thread button and reply to these questions. 3. Title your thread "Your Last Name
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