Construction Project Cycle and Bidding Process

Question 1

Represents the work to be accomplished, i.e., the quantity and quality of work

Answer 1

Scope

Question 2

Refers to the logical sequencing and timing of the work to be performed

Answer 2

Schedule

Question 3

Refers to costs, measured in pesos and/or labor-hours of work

Answer 3

Budget

Question 4

Stages of a Construction Project

Answer 4

Preconstruction Phase, Procurement Phase, Construction Phase, Closeout Phase

Question 5

A set of documents defining project scope and details and on which a contractor must base his decision to bid or not to bid

Answer 5

Bid Package

Question 6

When filled and submitted by a contractor, it illustrates his/her intent and commitment to perform the work as per the specifications and drawings in the desired time and budget filled out; not a formal contract.

Answer 6

Proposal Form

Question 7

Certain specifications regulating how a contract is to be administered and the relationship between involved parties. It defines each contracting party’s duties and rights, and the rules by which they are to meet obligations and perform the work they agreed upon.

Answer 7

General Conditions

Question 8

Supplementary conditions that covers aspects of the contractual relation that are peculiar to a specific project: duration of the project, owner’s procured materials and specified payment days.

Answer 8

Special Conditions

Question 9

Are verbal descriptions of the technical requirements and aspects of the work to be performed

Answer 9

Specifications

Question 10

A document illustrating any changes, additions, omissions, corrections and contract conditions that arise before bidding is finalized

Answer 10

Addendum

Question 11

A document announcing to prospective bidder that design documents are available for consideration and that the owner is ready to receive bids

Answer 11

Notice to Bidders/Tender Notice

Question 12

A contractor must base his decision to bid on:

Answer 12

Site inspection, analysis of contract documents, Quantity takeoff

Question 13

The calculation of the contractor’s costs including materials, labor and equipment

Answer 13

Estimate

Question 14

Bid value includes:

Answer 14

direct cost, indirect cost, mark-up

Question 15

Costs of materials, labor and equipment

Answer 15

Direct Cost

Question 16

Overheads for site office, costs of personnel, security costs, administration costs, cost of utilities

Answer 16

Indirect cost

Question 17

Contractor’s profit

Answer 17

Mark-up

Question 18

A statement submitted by a contractor illustrating his potentials for performing the current project. Includes company portfolio and satisfactory performance letters of other projects

Answer 18

Prequalification

Question 19

This is to provide supporting documents to help the owner decide on the best contactor to perform the works.

Answer 19

Prequalification