Unbalanced Clause Samples
An "Unbalanced" clause typically refers to a provision in a contract or agreement that creates an uneven distribution of rights, obligations, or benefits between the parties involved. In practice, this might mean that one party has significantly more power to terminate the agreement, impose penalties, or dictate terms, while the other party has limited recourse or flexibility. Such clauses often arise in standard form contracts or where there is a disparity in bargaining power. The core function of identifying or addressing an unbalanced clause is to highlight and potentially correct inequities, ensuring that the agreement is fair and that neither party is unduly disadvantaged.
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Unbalanced. Bid
a. An unbalanced bid is defined as either mathematically unbalanced or materially unbalanced. A mathematically unbalanced bid is one containing lump sum or unit bid items which do not reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs, which he/she anticipates for the performance of the items in question. A bid is materially unbalanced if there is a reasonable doubt that award to the bidder that submitted a mathematically unbalanced bid will result in the lowest ultimate cost to the Government.
b. All bids are subject to review for prices that are either in excess of or below the reasonable cost as compared to the Department’s estimate and historical prices kept for related services by the Department. The submittal of an unbalanced bid may result in the rejection of the Contractor’s bid. If the low bid proposal is determined to be materially unbalanced to the potential detriment of the Department, it will be considered irregular and will be rejected as nonresponsive.
Unbalanced. Bid Analysis
1. An unbalanced bid analysis will be performed under two circumstances: - If the department becomes aware of an error in a quantity of an item shown in the bidding documents. - If an item is found to be both significant to the contract and significantly unbalanced.
2. An individual item will be considered significant to the contract if any bidder has an item included in the proposal where the difference between the total cost of the item and the estimate, expressed as a percent of the estimated total contract cost, is greater than 0.50% for contracts less than $2,000,000 and greater than 0.25% for contracts $2,000,000 and larger.
3. An item will be considered significantly unbalanced if the difference between the low bidder's unit price and the estimate, expressed as a percent of the estimate, is greater than +50% or is less than -75%.
4. The unbalanced bid analysis must consist of the following steps:
4.1 The estimated unit price for items identified as being significantly unbalanced will be reviewed for correctness. Corrections will be made as needed and the low bidder's unit price will be reevaluated to determine if the item remains significantly unbalanced (see item #3).
4.2 Quantities for items found to be significant to the contract will be checked and verified. Quantities will be determined based upon the bidding documents and the construction methodologies depicted in the plan. These quantities will be used only for the purpose of performing the Unbalanced Bid Analysis.
4.3 Corrected quantities for items known to be in error (see item #3) plus corrected quantities for items significant to the contract will then be multiplied times the unit price bid for each contractor and a gross sum for the contract for each bidder will be calculated.
4.4 A comparison of the calculated gross sum totals will be made. If the calculated gross sum for the contract low bid is found to be higher than the calculated gross sum of another bidder, the low contract bid proposal is materially unbalanced. If the calculated gross sum of the contract low bid proposal is found to be less than the calculated gross sum of all other bidders, that bid is not materially unbalanced.
4.5 The comparison procedure explained in 4.4 above will be repeated as necessary using the next low contract bid proposal until a contract bid that is not materially unbalanced is found.
5. If the initial contract low bid proposal is found to be not materially unbalanced, the contract will b...
Unbalanced. Bid Amount means positive difference of eighty-five percent of Estimated Bid Value Minus Bid Amount Quoted by the bidder.