Subcontractor Quotes - What Is a Firm Offer?Ryan Beaver
April 1, 2009 — 480 views
A general contractor’s first goal for any construction project is to submit a successful bid that will secure the contract while allowing the contractor to make a reasonable profit. In pursuit of that goal, virtually every general contractor solicits quotes or bids from subcontractors for portions of the labor and materials in order to determine the cost of completing the project. In industry practice, the numbers provided by the subcontractors generally are considered firm offers, binding a subcontractor to the terms contained therein if its bid is selected. This allows general contractors to rely on the subcontractors’ bids to create an overall bid for the entirety of the project with some measure of security with regard to the numbers they are relying on.