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Read the Appellate Court Decision below and answer the following questions: 1. According to the DOT specs, what must be reflected each individual pay item?
Read the Appellate Court Decision below and answer the following questions: 1. According to the DOT specs, what must be reflected each individual pay item? 2. Why is additional compensation based on bid inaccuracies addressed by the DOT specs? 3. What was the appellate court's decision? Why? The Appellate Division noted that DOT specifications incorporated into the contract explicitly state that individual pay items must reflect fairly the estimated cost, overhead, and profit attributable to the work to be performed. The specifications also bar a contractor from receiving additional compensation based on inaccuracies reflected in individual pay items. According to the court, those provisions were developed to discourage contractors from submitting unbalanced bids. Specifically, the panel stated: It is undisputed that Paquet in its bid inflated the cost, overhead and anticipated profit attributable to the bridge work contemplated by the proposal. It is also undisputed that Paquet deliberately understated the cost, overhead and anticipated profit associated with other work items in order to arrive at its overall lump sum bid. Thus, the court concluded that under the express terms of the contract Paquet was not entitled to any portion of the $826,473.50 deleted from the contract
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