IREM Certified Property Manager (CPM) Practice Test 2026 - Free CPM Practice Questions and Study Guide

To ensure that a bid is within a typical price range, examining industry statistics is essential. These statistics provide benchmarks that reflect prevailing market conditions, average costs, and pricing trends for similar projects or services. By comparing the bid against these data points, one can assess whether the proposed pricing aligns with what is considered standard or competitive in the industry. This step helps to identify any discrepancies or outliers that may indicate either an overly low bid, which could compromise quality or service, or an excessively high bid that may not offer additional value.

In contrast, credit history of the principal focuses on the financial reliability of the contractor rather than pricing specifics. Investigating the contractor's active projects can provide insight into their current workload and capacity but does not directly relate to pricing benchmarks. Lastly, reviewing insurance coverage is important for risk management and ensuring compliance but does not contribute to evaluating whether the bid itself falls within a typical price range.