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BTLG Table of Contents > Sales and Use Tax Annotations > C > 190.0000 Construction Contractors > Annotation 190.2901

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C

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190.0000 Construction Contractors—Regulation 1521

Annotation 190.2901

(e) Fixed-Price Contracts

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190.2901 Irrevocable Bids. A subcontractor has submitted an irrevocable bid to a general contractor who has in turn submitted an irrevocable bid for a public agency construction contract. The agency is not ready to award the contract and requests an extension. The contractors have two options only—cancel their bids or agree to extend them on the original terms and condition. Because the contractors have the ability to walk away from the bid and refuse to go through with it in the event of a tax increase, it is considered that the bid does not qualify as an agreement for a fixed price. 7/15/91.