Ch. 10 - Getting to a Contract

Question 1

Call for tenders

Answer 1

(aka invitation to tender) a request by a buyer of goods or services (owner) to a group of potential sellers of those goods or services (bidders) to submit a proposal or bid for delivering a defined set of goods or services.

Question 2

Bidder

Answer 2

A party that submits a bid in response to a call for tenders

Question 3

Design-bid-build

Answer 3

A process in which a project owner and its consultant conceptualize and design a project in its entirety, the owner then hires a contractor to build it (through tendering), the consultant reviews the construction, and the owner finances the project and puts it into service.

Question 4

Design-build

Answer 4

A process in which a project owner conceptualizes a project, with or without a consultant; then hires a contractor to design it, build it, and review it; and then finances the project and puts it into service.

Question 5

Scope of work

Answer 5

The definition of goods and services to be supplied pursuant to a contract.

Question 6

Request for qualifications

Answer 6

A process used to choose a project participant based solely on the qualifications of the respondents, rather than on other criteria, such as price.

Question 7

Request for quotation

Answer 7

Is generally an informal process whereby separate requests are made with no formal closing time or tender closing conditions.

Question 8

Request for standing offers

Answer 8

A process in which the buyer prearranges prices, terms, and conditions with sellers for frequently ordered goods or services.

Question 9

Request for proposals

Answer 9

A specification that describes in detail all of the individual components of the final product.

Question 10

Proponent

Answer 10

A potential seller that submits a detailed proposal responding to a request for proposals.

Question 11

Prequalification

Answer 11

A process in which potential sellers are prequalified so as to limit the ultimate call for tenders or requests for proposal to limited number of qualified sellers.

Question 12

Bid

Answer 12

(aka a tender) an offer made in compliance with a fixed set of contract terms, usually in the context of a competitive process.

Question 13

Bid shopping

Answer 13

The practice of using a price submitted by one party to obtain a lower price from another party in a tendering situation. NOT illegal.

Question 14

Bid depository

Answer 14

A system used by buyers, sellers, and suppliers to receive sealed bids from trade contractors in the construction industry. Designed to prevent bid shopping.

Question 15

Construction management

Answer 15

A process in which the owner contracts directly with all of the trades rather than hiring a general contractor. Can hire construction manager to manage trades but if problems arise, owner must get involved.

Question 16

International trade agreement

Answer 16

An agreement between two countries that puts rules in place about the transfer of goods and services between two countries. e.g. NAFTA, WTO

Question 17

Interprovincial trade agreement

Answer 17

An agreement between the federal government and the provinces that puts rules in place about the transfer of goods and services between the provinces. Agreement on Internal Trade (AIT)

Question 18

Three Considerations for getting to Contract

Answer 18

Choosing project contractors, Delivering the Project, paying for the project

Question 19

3Ps

Answer 19

Public Private Partnership. Public provides land, private builds & operates 10 yrs. e.g. sewage treatment plant

Question 20

Contract Award

Answer 20

When bid is accepted, # of rights & obligations form. buyers & contractors should strictly adhere to the instructions to bidders to avoid liability. Buyers shouldnt decline to award the contract at all & re-tender

Question 21

Mistakes

Answer 21

if mistake makes bid compliant, renders bid unacceptable, must be obvious. Errors in judgement arent mistakes. Buyer can accept unless obvious & material.

Question 22

Bidding process

Answer 22

prep of docs, invitation by owner (tender), pricing by sellers, submission, evaluation, award.

Question 23

Contract formation

Answer 23

call for tenders by owner, bid submission by seller/supplier (contract A), bid offer submitted by seller, selection of winner by owner (contract B). e.g. Oak Bay Rec Building

Question 24

Fairness Monitor

Answer 24

person or firm that ensures the bidding process runs fairly, openly, & transparently

Question 25

Professional evaluators

Answer 25

members of the evaluation society, which is a society that promotes understanding and fairness in procurement.

Question 26

fairness commissioner

Answer 26

assists in resolving complaints in a fair and transparent way

Question 27

appeal or constestability procedures

Answer 27

provides an alternative to litigation (court system) for resolving disputes. So Buyers maximize fairness & transparency

Question 28

bid documents

Answer 28

drawings, specs, conditions, instructions to bidders, invitation to bidders