Among the criteria to reject all bids are that (1) the bid exceeds the project estimate, or (2) the bid exceeds the appropriation. Doesn’t the project estimate have to equal the appropriation?
No, the project estimate is independent of the appropriation. The appropriation is part of the budget process, whereas the project estimate is part of the project design. It is possible that the project is part of a multipurpose bond. Therefore, the estimate and appropriation would not always match. It is also possible that the appropriation is made six months prior to bidding for the project. During that time period, the cost of material or labor could have risen and additional funds might be made available.
