Construction Bid Errors: How to Handle Mistakes After Submission

Every estimator's nightmare: you submit a bid and then discover a significant error. Maybe you transposed numbers, forgot to include a major subcontractor, or made a math mistake. What happens next depends on when you discover the error, what type of error it is, and how you handle it. This guide explains your options and the proper procedures.

Types of Bid Errors

Clerical Errors

Mistakes in the mechanics of bid preparation:

• Mathematical errors: Addition, multiplication mistakes
• Transposition errors: Numbers reversed (e.g., $152,000 becomes $125,000)
• Omission errors: Leaving out a line item or sub bid
• Transcription errors: Copying wrong number from worksheet

These are generally the most correctable errors.

Judgment Errors

Mistakes in estimating or business decisions:

• Quantity estimate errors: Misreading drawings
• Pricing strategy errors: Underestimating costs
• Scope interpretation errors: Misunderstanding requirements
• Market misjudgments: Wrong labor/material prices

These typically don't qualify for relief.

Responsiveness Errors

Failure to comply with bid requirements:

• Missing documents: Forgot required form
• Incomplete information: Left fields blank
• Wrong format: Didn't follow instructions
• Non-acknowledgment: Missed addendum acknowledgment

These may or may not be correctable depending on severity.

Before Bid Opening

Withdrawal Rights

Before bids are opened, you generally have the right to:

• Withdraw your bid entirely
• Submit a corrected bid
• Modify your bid

Procedure:

1. Submit written withdrawal request
2. Must be received before bid opening
3. Follow agency-specific procedures
4. May need to be by same method as bid

Example notice:

To: [Owner/Agency]
Re: Withdrawal of Bid - [Project Name]

Please accept this written notice of withdrawal of our
bid submitted for [Project Name], Solicitation #[xxx].

This withdrawal is made prior to bid opening per
[applicable regulation/contract provision].

[Signature, Date]

Bid Modification

To modify rather than withdraw:

• Submit modification before opening
• Clearly reference original bid
• State specific changes
• Follow submission requirements

After Bid Opening

Limited Options

Once bids are opened, options narrow significantly:

Generally allowed:

• Correction of obvious clerical errors
• Verification of questionable amounts
• Minor informalities waiver (owner discretion)

Generally not allowed:

• Price changes (up or down)
• Scope modifications
• Material changes to terms
• Adding missing qualifications

Requesting Relief

If you discover a significant error after opening:

Immediate actions:

1. Notify owner immediately in writing
2. Document the error thoroughly
3. Provide supporting evidence
4. Request specific relief

Documentation needed:

• Original worksheets showing error
• Correct calculation
• Explanation of how error occurred
• Evidence error existed before bid
• Proposed corrected amount

Standards for Error Relief

What Courts/Agencies Consider

To obtain relief for a bid error, you typically must show:

1. The error was material

• Significant impact on price
• Not a minor discrepancy
• Would affect bidder's willingness to perform

2. The error was clerical, not judgmental

• Mechanical mistake
• Not a business decision
• Unintentional miscalculation

3. You acted promptly

• Discovered error quickly
• Notified owner immediately
• Didn't unreasonably delay

4. The error is documented

• Clear evidence in work papers
• Can be independently verified
• Shows original intent

5. Relief wouldn't prejudice others

• Other bidders not harmed
• Fair competition maintained
• Owner's interest protected

Federal Standards

For federal contracts, relief may be available when:

• Clear and convincing evidence of error
• Error arose from a mistake in bid preparation
• Error was made in good faith
• Owner had constructive notice of error

State/Local Standards

Varies by jurisdiction, but generally:

• Similar clerical error standards
• Must follow agency protest procedures
• Timing requirements apply
• May require bid bond forfeiture discussion

Specific Error Scenarios

Mathematical Errors

Example:

• Bid shows unit prices and extended amounts
• Extension calculations contain errors
• Unit prices are binding; extensions corrected

Typical resolution:

• Unit prices govern
• Totals corrected mathematically
• Bid stands as corrected

Transposition Errors

Example:

• Work papers show $1,560,000
• Bid form shows $1,650,000 (transposed)
• Supporting documentation clear

Potential resolution:

• May allow correction with proof
• Original worksheets are critical
• Must show error predated submission

Omitted Subcontractor Bids

Example:

• Sub bid received but not included
• Creates significant price error
• Discovered after bid opening

Challenges:

• Harder to prove than math errors
• May appear as scope exclusion
• Documentation critical

Double-Counting Errors

Example:

• Item included twice
• Results in inflated bid
• Discovered after opening

Note:

• Usually not correctable downward
• Protects competition integrity
• You're held to submitted price

The Withdrawal Process

Formal Request

To withdraw after opening, submit:

Written request including:

• Project identification
• Statement of error
• Nature and cause of error
• Amount of error
• Supporting documentation
• Request for withdrawal permission

Owner's Evaluation

The owner will typically:

• Review your request
• Examine documentation
• Verify error claim
• Consider impact on procurement
• Make determination
• Issue written decision

Possible Outcomes

Request granted:

• Bid withdrawn
• Bid security returned
• You're out of competition
• May bid again if re-solicited

Request denied:

• Must perform if awarded
• Or forfeit bid security
• May have appeal rights
• Consider legal options

Bid Security Implications

When Security Is At Risk

Your bid bond or deposit may be forfeited if:

• You refuse to execute contract after award
• You withdraw without valid cause
• Error claim is not substantiated
• You abandon the bid without permission

Protecting Your Security

To minimize forfeiture risk:

• Document errors thoroughly
• Act immediately upon discovery
• Follow proper procedures
• Maintain good faith throughout

Negotiating Outcomes

In some cases, owners may:

• Accept partial forfeiture
• Allow withdrawal with conditions
• Negotiate settlement
• Consider circumstances

Preventing Bid Errors

Estimating Controls

During preparation:

• Double-check all math
• Use estimating software
• Verify extensions
• Confirm sub bid inclusion
• Review quantity takeoffs

Before submission:

• Independent review
• Final math verification
• Checklist completion
• Second set of eyes

Bid Day Procedures

Implement:

• Formal review process
• Sub bid tracking log
• Pre-submission checklist
• Time buffer before deadline

Avoid:

• Last-minute chaos
• Single-person bid assembly
• Skipping verification steps
• Rush-to-deadline mentality

Documentation Practices

Maintain:

• Complete work papers
• Clear calculation trails
• Dated documents
• Sub bid logs
• Review signoffs

Benefits:

• Supports error claims if needed
• Enables verification
• Creates audit trail
• Demonstrates good faith

When Errors Become Disputes

Legal Considerations

If error relief is denied:

Options to consider:

• Administrative appeal
• Bid protest
• Legal consultation
• Settlement negotiation

Factors to weigh:

• Cost of relief versus forfeiture
• Legal fees and time
• Relationship impact
• Precedent value

Getting Help

For significant errors:

• Consult construction attorney
• Know your rights and deadlines
• Understand appeal procedures
• Make informed decisions

Post-Error Improvement

After Any Error

Immediate:

• Document what went wrong
• Identify root cause
• Determine prevention steps

Process improvement:

• Update procedures
• Add verification steps
• Train team members
• Implement controls

Building a Better System

Quality controls:

• Checklists at each stage
• Required reviews
• Time management
• Technology utilization

Team practices:

• Clear responsibilities
• Communication protocols
• No-blame error reporting
• Continuous improvement

Conclusion

Bid errors happen, but how you handle them makes all the difference. If you discover an error:

1. Act immediately - time is critical
2. Document thoroughly - proof matters
3. Follow procedures - proper process helps
4. Be transparent - good faith counts

Most importantly, invest in prevention. Strong estimating procedures, multiple review points, and adequate time before deadlines will prevent most errors from happening in the first place.

Remember that owners and agencies want fair competition and accurate bids. They have processes for handling errors because they understand mistakes happen. The key is demonstrating that your error was genuine, unintentional, and correctable while maintaining the integrity of the bidding process.

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