Bidding Procedures and Documents Flashcards
Which of the following is NOT included in an advertisement to bid?
A. bid form
B. details on the size and scope of the project
C. details on the type and amount of bid security required
D. name of the owner
The answer is A.
Solution
Bid forms are placed with the Instructions to Bidders in the project manual.
An advertisement to bid would be placed in a local news paper or posted with a plan room, which is a place (physical or virtual/on-line) where contractors can obtain information about projects currently out for bid.
Among other information, the advertisement to bid typi cally includes the name and location of the project; name and address of the owner and architect; description and scope of the project, including major materials and con struction systems; date, time, and location the bids are due; procedures for submitting bids; and type and amount of bid security required.
- Study Note: Understand the entire bidding process (con struction procurement), including advertisement to bid, invitation to bid, availability of bid documents, substitu tions, addenda, prebid conferences, bid opening proce dures, and the evaluation and awarding of bids.
Addenda are issued
A. prior to receipt of bids
B. after receipt of bids but before work commences
C. after the award of the contract
D. during construction
The answer is A.
Solution
An addendum is a written or graphic document issued by the architect prior to the submission of contractors’ bids that modifies or interprets the bidding documents. Addenda may be issued in response to errors discovered in the bidding documents, changes the client wants to make, questions from bidders, or additions or deletions needed. Addenda must be sent to all bidders at least four days prior to the bid date.
A contractor bidding on a project submits a bid fif teen minutes late, after bid opening has started. According to AlA Document A701, Instructions to Bidders (CCDC Doc ument 23, A Guide to Calling Bids and Awarding Construction Contracts), the architect should
A. allow the bid if there are no objections from the other bidders
B. return the sealed bid to the bidder, unopened
C. accept the bid, but review it later, after the other bids have been opened
D. stop the bidding procedure, and require that all bids be resubmitted at a later time
The answer is B.
Solution
Paragraph 4.3.2 of AlA Document A701 (CCDC Document 23) requires that bids be deposited at the designated location prior to the time and date for receipt, and that bids submit ted after that deadline be returned to the bidder unopened.
According to AlA Document A701, Instructions to Bidders (CCDC Document 23), bids must be submitted on
A. standard AlA (CCDC) bid forms
B. the contractors standard bid form
C. forms provided with the bidding documents
D. forms provided by the owner
The answer is C.
Solution
Paragraph 4.1.1 in AlA Document A701 (CCDC Document 23) states that bids shall be submitted on the forms included with the bidding documents. These forms are used because they can be tailored to meet the requirements for the project by including a listing of alternates and unit prices.
During bidding, a contractor wants to propose a sub stitution of a material specified in the contract documents. According to AlA Document A701, Instructions to Bidders, (CCDC Document 23), the request for substitution must be received by the architect ___ days prior to the receipt of bids. (Fill in the blank.)
The answer is 10 days.
Solution
According to AlA Document A701, Instructions to Bidders (CCDC Document 23), no substitutions can be considered unless a written request for such approval has been received by the architect at least ten days prior to the date for receipt of bids.
If the substitutions are approved, the architect must issue an addendum for the substitution approval no later than four days prior to the date for receipt of bids.
The architects drawings released for bidding indicate an area of exterior concrete paving with an indeterminate limit because the owner has not made a final decision con cerning the amount of paved area wanted. In order to fairly compare bid prices for the paving, the architect may request on the bid form that the contractors include
A. individual quotes
B. unit prices
C. fixed costs
D. contingencies
The answer is B.
Solution
A unit price is a set price quote, established by a contractor during bidding, for a specified amount of the work. The unit price is based on cost per unit of measurement, such as square foot (square meter), or linear foot (linear meter), or on individual units, such as a light fixture. Unit prices are requested on bid forms when the full extent of the work is unknown.
Which of the following would be used to formally incorporate a substitution into the work prior to award of the contract?
A. change order
B. addendum
C. alternate listing
D. construction change directive
The answer is B.
Solution
Addenda are used to make changes to the contract docu ments after they are issued for bidding but before the con tract is awarded. Change orders and construction change directives also modify the original contract documents, but they are used after the contract is awarded. An alternate list ing is simply the list of alternates that the contractor must include in the bid.
Which of the following may be part of the bidding documents?
I. specifications
II. invitation to bid
Ill. list of subcontractors
IV owner-contractor agreement
V performance bond
A. I, Ill, and IV only
B. II, Ill, and IV only
C. I, II, IV, and V only
D. I, II, Ill, IV, and V
The answer is D.
Solution
All of the items listed can be a part of the bidding docu ments, although all of these documents are not always included. Of the five, a list of subcontractors is used least frequently
At the scheduled time for a bid opening, a contractor comes rushing into the room three minutes late, clutching his bid. None of the bids has been opened yet. What should the architect do?
A. Refuse to accept the bid, stating that the dead
line has passed.
B. Since none of the bids have been opened yet, ask the other bidders if they would object to accepting the late bid.
C. Accept the bid with prejudice.
D. Accept the bid because none have been opened, but make a mental note to look on it with disfa vor while you are evaluating it.
The answer is B.
Solution
The contractor was only three minutes late, and-more important-none of the bids has been opened. In light of these facts, the most reasonable approach would be to ask the other bidders if there is an objection. If not, accept the bid.
However, if any of the bids had been opened, it would cer tainly not be advisable to accept late submittals, nor should a bid that is three minutes late be prejudiced if it is accepted, simply because it was late.
Which of the following statements about bidding is generally false?
A. Bidding procedcures must be clearly and extensively outlined in the instructions to bidders because there are so many variations of the procedures.
B. Bidding is nearly always requried for federally funded projects.
C. Open bidding usually presents more problems than other types.
D. Competitive bidding takes more time than negotiations but can result in a lower construction cost.
The answer is A.
Solution
Bidding procedures should always be clearly stated, but not because there are so many variables. In fact, bidding proce dures are fairly well established in the construction indus try; regardless of whether there is open bidding or private bid openings.
Government-funded projects at the federal, state, or local level are generally required to bid.
Open bidding means that nearly anyone can bid, regardless of experience. This encourages a variety of contractors to participate, but when bidding is open, it can be difficult to evaluate qualified bidders. In addition, the cost and com plexity of advertising and administering the bidding process may increase.
The bid process can lengthen total project time due to the time alloted for review of the construction documents and contract negotiation, but the competitive nature of bidding allows the owner to compare prices before hiring a contrac tor.
A performance bond
A. ensures that subcontractors complete their work
B. guarantees that the contractor will finish on time
C. covers any possible liens that may be filed on the building
D. protects the owner by having a third party responsible for completing the work if the con tractor does not
The answer is D.
Solution
A performance bond is issued by a surety company that obligates itself to finish a project should the contractor default.
A labor and material payment bond is designed to pay liens if they occur. Other provisions of the owner-contractor agree ment, such as liquidated damages, are designed to encourage the contractor to finish on time. The general contractor is responsible for the performance of the subcontractors under provisions of AlA Document A201 (CCDC Document 2).
If the lowest bid comes in 20% over a client’s construction budget, the architect should advise the client to
A. increase the budget
B. rebid the project using another list of contractors
C. collaborate on revising the scope of the project to reduce cost
D. accept all the deduct alternates, to reduce the bid, and authorize a slight increase in construc tion cost to bring the two closer together
The answer is C.
Solution
The most reasonable alternative is for the owner and archi tect to work together to make adjustments to the design to comply with the budget. The architect is obligated to make these revisions under the provisions of AlA Document Bl4l (RAIC Document 6).
It is unlikely that the client could afford to increase the budget, or would consider that an acceptable alternative. Rebidding the project, even with a different group of con tractors, would probably not result in much, if any, cost sav ings. Accepting all the deduct alternates might not be a desirable course of action and may not even be enough to compensate for the cost overrun. It is better to consider the project holistically and make changes to bring it in within the budget.
What variable affects a bid the most?
A. the contractors profit margin
B. the influences of the construction marketplace
C. labor and materials
D. subcontract bids
The answer is C.
Solution
Labor and materials, by far, have the biggest influence on the cost of a job because they represent about 80% of the cost. Labor and materials costs influence the amount of subcontractors’ bids. Profit tends to be based on a percentage ofthe construction cost, and market influences do not have as great an effect on overall costs as the raw costs of the labor and materials required to construct the project.
Procedures a bidder must follow to propose a substitution will be found in the
A. advertisement to bid
B. bidding procedures
C. instructions to bidders
D. general conditions
The answer is C.
Solution
During bidding, the procedure a contractor must follow to propose a substitution is defined in the instructions to bid ders. After the contract is awarded, if the contractor wishes to propose a substitution, he or she must consult the instructions in the general requirements of the specifica tions. The advertisement to bid simply states that bidding is being accepted for a particular project and gives informa tion about how to submit a bid. There is no such document as “bidding procedures.”
When the owner wants to make sure some amount of money is included in the bid before the exact specification for the item is known, the architect should use
A. an allowance
B. an add alternate
C. a material bond
D. a unit price
The answer is A.
Solution
When the owner wants to make sure some amount of money is included in the bid before the exact amount of the item is known, the architect should use an allowance. For example, the contractor may be asked to include a $10,000 allowance on a residential project for kitchen appliances. This gives the architect and owner the opportunity to choose the appliances at a later date. If the cost of the selected appliances exceeds the allowance, the contractor is owed the difference. Alternates are used to require the contractor to provide an alternate price for something that varies from the base bid. Alternates can be either “add” or “deduct” depending on the change to the contract amount. A material bond is a way to guarantee payment for materials by a bonding company. A unit price is a way to obtain a price commitment from a con tractor on a portion of work before the total quantity of the work is known.
