Utah General Contractors - Business and Law Practice Exam

What typically follows a bid proposal in the construction process?

1. Signing of the contract

2. Immediate start of construction

3. Payment of the deposit

4. Change orders being issued

The correct answer is: Signing of the contract

The signing of the contract typically follows a bid proposal in the construction process. Once a bid proposal has been submitted and accepted by the owner or project manager, the next step is to formalize the agreement between the contractor and the client through a contract. This contract outlines the terms and conditions of the project, including the scope of work, deadlines, payment schedules, and any other pertinent details that govern the relationship between the parties involved. Entering into a contract is a critical step as it protects both the contractor and the client by clearly defining their obligations and expectations. After this contract is signed, the contractor can then proceed with planning and scheduling the construction work. While it might seem logical that some other options could also follow a bid proposal—such as receiving a deposit or starting construction—these actions cannot occur until a contract has been duly signed. Change orders are also part of the construction process but would come later as adjustments to the project that alter the original contract terms.