Recently, I was asked what a contractor
could do after discovering that
he underbid a job by 50%. Short of suicide,
the answer depends on the nature
and status of any contract as well as the
type of error that led to the bad price.
Is There a Contract?
The first thing we need to know is
whether there is already a contract
between the owner and the half-priced
contractor. Assuming that we're dealing
with private parties (the rules change
when the owner is a government
agency), if no contract exists, then the
contractor can usually just withdraw or
correct the bid.
In the absence of a state law requiring
a written contract, a contract can still