What is the purpose of adding or deducting an alternate price in a bid?

The purpose of adding or deducting an alternate price in a bid is to clarify costs for specified items. Alternate prices are typically included in bid documents to provide a clear breakdown of how much specific aspects of the project will cost either for inclusion or exclusion from the base bid. This allows the client or the project owner to understand the financial implications of choosing to add or forgo certain elements, such as premium materials, specific architectural features, or additional services.

By establishing these alternate prices, bidders give clients the ability to make informed decisions based on budget constraints or preferences for add-ons that enhance the project. This structured way of presenting pricing ensures transparency and assists in effective financial management throughout the bidding process.