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Multiple Choice

A contractor is bidding on an electrical project that requires extensive underground trenching in an area with unknown soil conditions. They are analyzing two different bidding strategies:

  • Strategy A: Include a high, 'worst-case' fixed price of $8,000 for trenching to cover potential rock.
  • Strategy B: Include a 'base' price of $3,000 for standard trenching plus a clearly defined 'Allowance' of $200/hr for a rock-hammer if rock is actually encountered.

When analyzing these two approaches, why is Strategy B typically considered the more professional method for managing risk in an electrical bid?

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Updated 2026-05-09

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