Estimating Practice Exam

What are quoted prices for proposed changes in specifications commonly referred to as?

1. Alternative prices

2. Change orders

3. Additional costs

4. Supplementary bids

The correct answer is: Alternative prices

Quoted prices for proposed changes in specifications are commonly referred to as alternative prices. This terminology is used in the context of construction and project management when there are adjustments or modifications to the original plans or specifications, and it is necessary to assess the financial implications of those changes. Alternative prices provide clients or stakeholders with options that can be adopted, which allows for informed decision-making regarding what changes to implement based on their budget and project needs. The use of this term indicates that these prices are alternatives to what was initially proposed, highlighting that they might not be the default or initial costs outlined in the original contract. By contrast, change orders typically refer to formal documents that authorize changes to the scope of work, but they do not inherently represent a set of quoted prices. Additional costs imply expenses incurred beyond the original budget without necessarily tying them to specific changes. Supplementary bids would suggest a more competitive bidding context for changes rather than straightforward pricing for alternatives already considered. Therefore, the term alternative prices best captures the notion of quoted prices for changes to specifications.