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LARE Section 1 > Bidding and Contracts > Flashcards

Bidding and Contracts Flashcards

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1
Q

DIVISION 1

A

General Requirements

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2
Q

What are the disadvantages to the design-bid-build process

A
  • accurate cost unknown until design is done
  • bids that exceed the owners budget cannot be readily accommodated without jeopardizing the project
  • The various parties tend to be adversarial
  • Errors or omissions in design may lead to costly change orders
  • A negotiated contract eliminates many of these concerns (and some of the advantages as well)
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3
Q

What is the purpose of a short list in the bid process

A

To ensure the contractors bidding have the qualifications needed to complete the work

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4
Q

Value Engineering

A

essentially relates to reviewing the contract documents with the owners best interest in mind

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5
Q

What phases can Value Engineering be applied

A

design and construction phases

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6
Q

Constructability Review

A

an assessment of the contract documents prior to the bidding phase, to identify problem areas and suggest improvements

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7
Q

Instructions to Bidders

A

rules by which the project will be bid

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8
Q

Addenda

A

clarification and changes to the bid documents after the start of the bid notice

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9
Q

Alternates

A

alterations to the base bid, in general, bed to avoid

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10
Q

Bid form

A

included in the bid documents, allows for easy comparison of bids

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11
Q

Give an example of an irregular or nonconforming bid

A
  • Missing signature
  • Missing a bond or a bond from an approved surety
  • Late submission
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12
Q

Under what conditions might the low bidder be able to withdraw the bid, even though the bids have already been opened?

A

Request has been made to the owner, in writing, before the time set for opening the bids

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13
Q

In public projects how is the winning bidder chosen

A

lowest responsible bidder submitting a regular bid

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14
Q

What unique risks are taken by a contractor who is not licensed?

A

Cannot use the court system as a means of redress for any construction-related disputes

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15
Q

Why might a mistake in a bid be seen as grounds for nullifying the bid?

A

There is no meeting of the minds

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16
Q

What is reverse auction and what are the issues potentially

A

all the contractors can see other bids submitted online but can be seen as unethical/bid shopping

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17
Q

Who owns the design in public projects verse public projects

A

In public projects, the owner, and in private project, its established in the contract

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18
Q

General drawing categories on building projects (6)

A

general information and site work, structural, architectural, plumbing, heating/AC/Ventilation, and Electrical

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19
Q

The project manual consists of which sections

A

bidding documents, general conditions, supplementary provisions, and the technical specifications

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20
Q

What is the underlying purpose of the general conditions, or boilerplate, of a construction contract

A

Outline the rules under which the project will be built

Establish the rights, authority and obligations of the contracting parties

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21
Q

What is the general purpose of supplementary provisions or special conditions in a construction contract

A

Specific to the job being constructed

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22
Q

What is the significance or value of using CSI format in preparing the technical specifications for a building project

A
  • Widely used, helps the user become quickly oriented with the project
  • Divisions listed on page 161 of Hinze
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23
Q

In the case of a conflict between plans and specifications which will govern

A

the specifications

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24
Q

If an item is not present in either the specs or the drawings but is in the other, how does the contractor bid the project

A

The contractor will still include that in their bidding process. They can use a request for information (RFI) submitted to the architect to clarify.

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25
A spec must satisfy the what basic criteria
- Technical accuracy and adequacy - Definite and clear stipulations - Fair and equitable requirements - A format that is easy to use during bidding and construction - Legal enforceability
26
Types of specifications
- Design specs - Performance specs - Performance and Designs Specs
27
Give an example of a design specifications
- Also called material and workmanship specifications, method and materials specifications, and prescriptive specifications - Stipulates HOW the contractor will complete the work and implies that this will produce the desired result - Contractor is not liable if the desired results are not accomplished if they adhere to the spec - The owner is responsible for the outcome of the design specifications
28
Give an example of a performance specification
- The results or the performance of the finished product, rather than the specific methods and materials used to construct the product are specified - In these specs, the responsibility of the design rests with the contractor - Preferred by owners as it incorporates the knowledge and expertise of the contractor
29
Performance and Design Spec
This type of spec is one in which the contractor is instructed how to do a task and then told to warrant that the results will be satisfactory.
30
Differences between closed and open specifications
Nonrestrictive specifications (commonly referred to as an “open” specification) are written in such a manner as to not limit competition, directly or indirectly, to any one specific concern. An "open" specification allows products of any manufacturer to be used if the product meets the specifiedrequirements. In contrast, a "closed" specification restricts a product to a single manufacturer. A “closed” specification is generally prohibited.
31
Other terms for open specifications
non-restrictive, or equal, or approved equal, all-inclusive, reference, standard specifications
32
Other terms for closed specifications
proprietary spec
33
Is a multi-proprietary specification open or closed?
May be both
34
How can a proprietary specification be made into an open specification
Including “or equal” language after the specified model
35
DIVISION 2
Sitework
36
DIVISION 3
Concrete
37
DIVISION 4
Masonry
38
DIVISION 5
Metals
39
DIVISION 6
Wood and Plastics
40
DIVISION 7
Thermal and moisture protection
41
DIVISION 8
Doors and Windows
42
DIVISION 9
Finishes
43
DIVISION 10
Specialties
44
DIVISION 11
Equipment
45
DIVISION 12
Furnishings
46
DIVISION 13
Special Construction
47
DIVISION 14
Conveying Systems
48
DIVISION 15
Mechanical
49
DIVISION 16
Electrical
50
What information should be included in an advertisement that does not relate directly to the nature or scope of a project to be constructed
Type of contract, bonding requirements, terms of payments, bid details (time, manner, place), location to obtain bid docs), deposit required on bid documents, owners right to reject any and all bids, requirements regarding wage rates
51
Constructibility Review
an assessment of the contract documents prior to the bidding phase, to identify problem areas and suggest improvements. Conducted by the design team during the contract document creation
52
Alternates
alterations to the base bid, in general, bid to avoid
53
Bid form
included in the bid documents, allows for easy comparison of bid
54
What unique risks are taken by a contractor who is not licensed?
Cannot use the court system as a means of redress for any construction-related disputes
55
Who owns the design?
In public projects, the owner. In private projects, it’s established in the contract
56
What is the underlying purpose of the general conditions, or boilerplate, of a construction contract
Outline the rules under which the project will be built | Establish the rights, authority and obligations of the contracting parties
57
A spec must satisfy the following basic criteria:
- Technical accuracy and adequacy - Definite and clear stipulations - Fair and equitable requirements - A format that is easy to use during bidding and construction - Legal enforceability
58
design specifications
- Also called material and workmanship specifications, method and materials specifications, and prescriptive specifications - Stipulates HOW the contractor will complete the work and implies that this will produce the desired result - Contractor is not liable if the desired results are not accomplished if they adhere to the spec - The owner is responsible for the outcome of the design specifications
59
performance specification
-The results or the performance of the finished product, rather than the specific methods and materials used to construct the product are specified - In these specs, the responsibility of the design rests with the contractor Preferred by owners as it incorporates the knowledge and expertise of the contractor
60
Performance and Design Spec
This type of spec is one in which the contractor is instructed how to do a task and then told to warrant that the results will be satisfactory.
61
closed specification
requires a specific item or system. IN public works projects, more than 3 models must be names to avoid being considered closed.
62
Types of closed Specs
Proprietary spec: Specifically states what is to be provided w/o any allowance for alternatives Multi-proprietary spec: - May be open or closed - Design spec - Models of more than one manufacturer are specified
63
Types of Open Specs
``` Or Equal Or Approved Equal All-Inclusive Specs Reference Specifications Standard Specs ```
64
Or Equal specs
- Modification of proprietary specs in that it is followed by ‘or equal’ - Should be avoided by spec writers as it is difficult to argue that an alternative is not equal
65
Or Approved Equal specs
Architect is not liable if a substitute is accepted and later proves to be inadequate
66
All-inclusive Specs
Languages such as “as directed by the engineer”, “to the approval of the architect” makes it hard to bid on
67
Reference specifications
Establish the performance of a product as measured by a standard or accepted test procedure
68
Standard specifications
Set of technical specs developed by an owner that can be used on similar type projects.
69
How can a proprietary specification be made into an open specification
Including “or equal” language after the specified model
70
Unit Price Contract
Unit price contracts are appropriate for when the project is well defined but the actual quantities are impossible to estimate with accuracy until after construction has started
71
Balanced bid
a bid which the anticipated costs for the various items are accurately reflected in the unit prices that are submitted
72
How is a unit price contract paid out
Payment is made by determining quantities complete, verified by representative of the owner
73
What are the disadvantages to the unit price contract
Owner won’t be certain of actual cost until the project is complete. The extent of this shortcoming is directly related to the accuracy of the estimate
74
Cost-Plus Contract
A contractor is reimbursed for most of the direct expenditures associated with a particular project plus an allowance for overhead and profit. Allowance can be fixed fee or percentage of construction
75
When is a cost-plus contract appropriate
This contract is appropriate when the actual costs of the project are difficult to measure with accuracy. This could be due to incomplete plans, the project cannot be accurately portrayed or if a short time period. Can be useful is a lot of changes are anticipated throughout the project
76
Lump Sum Contracts
Most common type used in the construction industry, value of individual items is ideally set out before the start of construction. Pay out is typically monthly
77
How are changes addressed in lump sum, unit price, and cost-plus contracts
lump sum and unit price are negotiated separately and cost plus is automatically addressed as part of the contract.
78
Cardinal change
changes not within the general scope
79
Difference between extra work and additional work?
Extra work consists of work outside of the contract Additional work consists of work that must be undertaken to meet the contract requirements, w/o this work, the work requested in the original contract will not be able to be completed (to be considered, could not have been anticipated)
80
What basic exceptions in no damage for delay clauses permit the contractor to be awarded damages?
- If a delay were not contemplated at the time of contract negotiation, commonly denial of access to site - Acts of interference, acts or omissions by the owner which actively interfere with work progress (ex. Delayed completed plans) - Unreasonably long delays - Fraud or bad faith
81
What is the purpose of retain age in payments to the contractor
to provide a cushion for incorrect payments
82
Latent Defects verses Patent Defects
Latent: cannot be seen typically with destructive investigation (are the responsibility of the contractor even after the owner has assumed occupancy) Patent: quickly/easily observed
83
How are the principles of warranties applied to the work of design professionals?
Warranties for professionals is meant to say that the work will be consistent w/ the standards of the profession
84
Does the acceptance of a shop drawing remove the liability from the contractor?
no

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