Chapter 8. Facilities Management
Section 8.7. Planning, Engineering, and Construction

8.7.1.3. Over Budget Bids

Over Budget Bids: Bids that exceed the available funding for the project.

Policy for over budget bids is to "Proceed in the best interests of Michigan Technological University considering implications of timing, need, cost, and funding source on the project's completion."

The priority for dealing with over budget bids should be as follows:

1. Negotiate with the lowest responsive bidder except as prohibited by Michigan law regarding contracts with corporations owned by University employees or trustees.



2. Rebid with all responsive bidders via a post-bid addendum.



3. Major redesign and rebid.



4. Delay or cancel project.



5. Seek additional funding (depending on the situation this may occur first, last, in combination with 1, 2, 3, or 4, or not at all.)