Property Management
In NJ, a property manager who is authorized to make capital improvements up to $10,000 per item receives bids of $8,500 and $11,200 for the same roof repair. The manager should:
AAward the lower bid without informing the owner
BInform the owner that the $11,200 bid exceeds their authorization limit and seek owner approval before proceeding✓ Correct
CSimply choose the lower bid since it is within authority
DReject both bids and self-perform
Explanation
The property manager must notify the owner that the lowest qualified bid exceeds their authorization threshold before proceeding. Good practice requires transparency—the manager cannot assume the owner would approve the $8,500 option without notification.
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