Can a contractor bid in excess of their monetary limit?
Yes; there is a 10% bid tolerance, only. Contractors with a restricted limited license (BC-A/r) classification, with a $70,000 limit, do NOT have a 10% bid tolerance. Prime contractors must be cautious when obtaining bids from subcontractors. § TCA 62-6-120 finds it a violation for a contractor to accept a bid from a subcontractor without the sufficient monetary limit and classification. In addition, only the owner may supply labor/equipment, therefore, could not be deducted from their portion of the project’s total cost. Caution is recommended when bidding alternates as part of the total bid. Note: The Attorney General has issued opinions on this matter; February 11, 1993 (#93-12); and August 6, 1981 (#81-452). If a bid is rejected for failing to supply a valid bid due to violating the law, the prime contractor may not be allowed to bid on any rebidding or participate on the project.
