hardhatU
Concept

Bid Alternates

Optional scope items priced separately from a bid's base price, letting an owner add or remove specific work, such as upgraded flooring, an additional floor, or alternate HVAC equipment, after seeing what each alternate actually costs, without having to rebid the whole project.

Why it matters

Alternates give an owner facing budget uncertainty real control over final scope after bids come in, letting them add or drop specific items based on actual pricing rather than committing to everything, or nothing, before knowing the numbers.

On a real project

A school district's bid package includes a base price for a standard roof plus a separately priced alternate for a more durable membrane. Once bids come in within budget, the district accepts the alternate on top of the base bid.

Who this matters most to

An Estimator prices each alternate separately from the base bid. An Owner's Representative decides which alternates to accept once real bid numbers are in hand.

Where this goes wrong

An estimator prices an alternate assuming it shares mobilization costs with the base bid scope. The owner doesn't accept the alternate until several weeks after award, by which point the relevant subcontractor has already demobilized, and the actual cost of executing the alternate now runs well above the number carried in the bid.