California Contractors License Law 2025 – 400 Free Practice Questions to Pass the Exam

A contractor should ensure that a salesman's bid matches their valuation because this alignment is crucial for reflecting the true costs and scope of the project. If a contractor relies on a bid without confirming that it corresponds with their own appraisal of the job, they may encounter budget overruns, incomplete work, or a misalignment in project expectations.

The valuation is essentially the contractor’s estimate of what it will take to complete the work, accounting for labor, materials, overhead, and profit margins. If the bid does not match this valuation, the contractor risks entering into a contract that does not adequately cover costs, leading to potential financial losses.

Evaluating bids based on market competitiveness, lowest cost, or a legal review can be important aspects of the bidding process, but without ensuring that the bid aligns with the contractor's valuation, none of these other considerations would materialize into a viable and profitable business decision.