ARE_Bid_Analysis_and_Process Flashcards
(25 cards)
Why are bidding requirements stricter for publicly funded projects?
To ensure fairness due to the use of taxpayer funds.
What is required in public bidding processes?
Award to the lowest responsive and responsible bidder, bids opened in public, and bids recorded.
What does Value-Based Selection (VBS) allow?
Selection of contractors based on quality, schedule, or other factors besides cost.
What is Qualification-Based Selection (QBS)?
Private clients select contractors based on quality, speed, or subjective criteria, not just price.
What are RFIs during bidding?
Requests for Information from bidders to clarify or address missing or conflicting info in bid documents.
What are the two types of RFIs?
Clarification requests and substitution attempts.
How should architects handle substitution RFIs?
Review proposed changes, evaluate impact, and issue an addendum if necessary.
Why must RFI responses be issued to all bidders?
To ensure fairness and consistency of information.
What is the purpose of a substitution request process?
To provide detailed comparisons and justification for alternate products.
What is value engineering?
Reviewing bidder-suggested alternatives to reduce cost without compromising quality.
What should the architect analyze in value engineering proposals?
Life cycle cost, durability, maintenance, and warranty vs. the basis of design.
What is a stipulated sum bid?
A single all-inclusive price to perform the project work.
When is a stipulated sum most appropriate?
When contract documents are complete and scope is clearly defined.
What is a Guaranteed Maximum Price (GMP)?
A not-to-exceed price based on incomplete documents, including contingency for unknowns.
Why do GMP contracts expose contractors to risk?
If actual costs exceed GMP, contractor must cover the difference.
What is the cost-plus or time & materials method?
Owner pays actual costs plus a markup for overhead and profit, often used on small or renovation projects.
What is unit pricing?
Contractor provides a fixed rate per unit (e.g., per SF, LF, item), useful for repetitive or undefined work.
What is target pricing?
Used in DB projects, bidders propose the best solution within a set cost per unit (e.g., per SF).
What are construction costs in a bid?
Direct costs to perform the work including labor, materials, insurance, mobilization, etc.
What is a performance bond?
Insurance that ensures the project will be completed if the contractor defaults.
What is contingency in a bid?
An amount to cover unforeseen conditions or errors, separate from owner’s contingency.
What does overhead and profit cover?
Contractor’s general operating costs like salaries, rent, and administrative expenses.
What is the bid administrator’s role?
Tabulate, compare, and analyze bids to recommend a contractor to the owner.
Why is it important to analyze alternates in bids?
Lowest bidder may vary depending on selected alternates.
