Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the consultant?
- Assist and advise client on obtaining bids
- Awarding and preparing contracts (RAIC Doc 6)
- Distribution of the bid documents
- Analyze the bids and give recommendations
- Prepare letter of acceptance/intent
Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the owner?
- Distribute bid documents
- Analyze bids
- Selection of successful bidders
- Issue the letter of acceptance/intent
Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the contractor?
- Bid deposit/bond
- RFI
- Submit bid (Tender)
- Execute contract
Roles and Responsibilities during Bidding:
Describe the role of local construction associations and bid depositories.
A bid depository is a facility operated by the local construction association to collect and register bids from subcontractors and suppliers, and then transmit these subtrade bids to general contractors.
- Usually used for electronic tendering, or when there are a large number of tender documents for complex projects.
Roles and Responsibilities during Bidding:
What is the purpose of the bid depositories rules?
- Minimize confusion
- Limit bid shopping
- make all required information available to all members of each bid depository and to all general contractor bidders registered with that bid depository.
Methods of Awarding a Contract:
What are the 3 common methods for selecting a general contractor?
- Open competitive bids (public tender)
- Close competitive bids (invited tender)
- Direct selection
Methods of Awarding a Contract:
Explain Open Competitive Bids
- Also called public tender call.
- Bidders are not usually screened or pre-qualified and, and the capability of the contractor is unknown.
- Contractor may be selected on price alone.
- Usually done for public projects.
Methods of Awarding a Contract:
Explain Invited Competitive Bids
- Client may select contractors that the architect or the client have had a satisfactory experience with.
Methods of Awarding a Contract:
Explain Direct Selection
When the client negotiates a contract with a single contract who they have developed a relationship with. They are based on mutual trust and full disclosure of all estimates.
The Bidding Process:
Outline the steps of conducting the tender
- Notify prospective bidders of the opportunity to bid through public advertisements or direct contact. Pre-qualification
- Issue the tender documents to the bidders.
- Conduct a bidders’ conference in which all bidders have the opportunity to receive information, ask questions and, in the case of existing facilities, tour a site and building.
- Respond to inquiries. (Addenda)
- Receive and evaluate proposals. (Analyze)
- Negotiate outstanding conditions to the contract. (Letter of Intent)
- Award the construction contract.
- Post bid (Bonds/Sureties).
- Execute the construction contract.
The Bidding Process:
What does a pre-qualification general consist of?
- Company information, including ownership, when established, construction capacity given in annual gross revenues.
- Resumes for people proposed to be assigned to the project.
- Demonstration of capability through the successful completion of similar projects.
- Safety records.
- Methodology used in managing projects,
The Bidding Process:
What is a bid bond, and what is the typical bond amount?
A bid bond is a guarantee from a surety company to the project owner that a contractor is able to fulfill the obligations of the contract and provide contract bonds before work begins. The typical bond amount is 5-10% of the construction cost.
The Bidding Process:
What happens if the owner accepts a bid but the contractor fails to enter the contract?
If the contractor fails to enter into a
contract, the surety will guarantee - up to the amount of the bid bond - to pay the difference in money between the amount of the contractor’s bid and the amount for which the owner legally contracts with another contractor for the project.
Required Documentation:
What is required in the bid package?
- Bidding requirements (Bid Form, Bid Bond Requirements)
- Contract requirements (Insurance, bonding requirements and allowances)
- Specs
- Site Data (Surveys, Geotech, environmental reports)
- Drawings
- Schedule Restrictions
- Addenda
