1. Bidding & Negotiations Flashcards
1
Q
What does CCDC stand for?
A
Canadian Construction Documents Committee
2
Q
List the contract form & type of const. delivery for each:
CCDC 2
CCDC 3a
CCDC 3b
CCDC 4
CCDC 5
DOC 14
A
- CCDC 2
Stipulated Price Contract
Design-Bid-Build
- CCDC 3a
Cost Plus Contract (% or fixed fee)
Design-Bid-Build
- CCDC 3b
Cost Plus Contract (guaranteed max. price)
Time & Materials
- CCDC 4
Unit Price Contract
Max Upset Price
- CCDC 5
Canadian Standard CM Contract Form btwn Owner CM
Construction Management
- DOC 14
Design-Build Stipulated Price Contract
Design-Build
3
Q
List the 4 main types of project delivery:
A
Design-Bid-Build
Construction Management
Design-Build
Public Private Partnership (p3)
4
Q
The purpose of prequalification of bidders is …
A
…to select only those contractors who meet certain standards of reliabilty, experience, financial stability, and performance
5
Q
List the advantages of a design-bid-build project: (5)
A
- Common/familiar
- Clear roles
- Transparent
- Design resolution prior to constr.
- Direct professional relationship w O & A
6
Q
List the disadvantages of a design-bid-build project (4):
A
- No constr. input during design
- O see more ‘extras’
- GC unknown during design
- Contracts (Public - go to low bid)
7
Q
What types of projects are best suited for a cost plus delivery method? (3)
A
- Fast projects (can start before design complete)
- High quality needed
- Unknowns
Use CCDC 3
8
Q
What risks are associated with Cost Plus project delivery? (3)
A
- No incentive to avoid cost overrun
- project cost is unknown
- Not allowed for public proj.
9
Q
What are 3 common ways to calculate the GC fee for Cost Plus projects?
A
- Agreed upon fixed sum
- % of cost of work
- % of cost of work to max upset
10
Q
Why would an Owner add a CM to the team? To oversee (3)
A
to oversee:
- schedule
- cost
- construction method
11
Q
What are the 3 possible roles for a CM and their corresponding contract forms?
A
- CM as Advisor - CCDC 5a
- O contracts each of the 3 parties separately (CM, Architect, Contractor)
- higher administrative costs
- can confuse roles & responsibilities
- CM as Agent - CCDC 5b
- O contract w CM who directly engages Prime and GC on behalf of O
- construction risk not known until end
- risk flows to owner
- CM as Constructor
- hired prior to completion of design
- shifts all risk to GC
- typ. more expensive
12
Q
What project delivery method often takes the name ‘Project Management’?
A
CM as Agent (representing Owner)
13
Q
What are the pros(2) and cons(2) of Project Management project delivery?
A
+ Well informed O better able to choose based on quality vs. cost.
+ Better quality design when architect can draw on PM experience
- not permitted by most provinces??
- unless arch has direct link w O, PM can implement cost savings changes that lower quality
14
Q
What are the 2 phases of a Design-Build project delivery method.
A
- Phase 1 - Design Builder (DB) provides design within budget (may be in competition with other DBs)
- Phase 2 - Stip-Price Contract (may include a cost plus fee agreement, savings accrue to owner)
15
Q
What does the organizational structure of Design-Build project w Bridging look like?
A
16
Q
Who should seriously consider using a ‘bridging’ or ‘advocate’ architect on a design-build project?
A
Less sophisticated Owners, who do not have in-house architectural, engineering or
project management expertise
17
Q
What are the advantages of a design-build project delivery method? (3)
A
- Single point of responsibility
- Faster than traditional method
- In DB competition, GC more motivated to provide cost savings /value
18
Q
What are some disadvantages of the Design-Build project delivery method?
A
- Cost savings could be in conflict w building quality & maintenance costs
- More complex process than CM
- The owner is disconnected from the DB Architect & Engineers
- More risk than CM
- Too difficult / costly for one-off building types
*w bridging: CM is often faster
19
Q
What other project delivery method is a ‘Turnkey’ development most like?
A
aka Design-Build by developer
In this contract the DB entity takes on added responsibility of acquiring land, dps and financing. The O does not take financial responsibility until the project is complete.
20
Q
When & why is the P3 (Public Private Partnership) project delivery method used?
A
USE: Very large infrastructure projects or bundles of smaller projects of the same type
WHY: Private can administer more efficiently /quickly than public
21
Q
What are the advantages of a P3 project delivery method? (5)
A
- Efficiencies & expertise of private sector
- Life cycle costs reduced if operated by private
- Single point of responsibility
- Reduced time /const. schedule
- Design is often the deciding factor in proposal selection
22
Q
What are the disadvantages of a P3 project delivery method? (5)
A
- transfers risk to private sector
- ‘best value’ not always acheived (more like best $$)
- lack of communication btwn O and A
- building users have less control over outcome
- professional liability insurance hard to get (particularly for small firms)
23
Q
What are the absolutely essential terms that must be included in a contract?
A
1) the project scope
2) the project time frame
3) project fees
24
Q
What are the 7 steps of bidding & tendering?
A
- Decide how Owner will Obtain Bids
- Preparing Bid Package
- Distribution of Bid Docs
- Addenda
- Bid Period & Bid Closing
- Analysis of Bids
- Contract Award
25
Prequalification of contractors is based on...
...information submitted by contractos concerning their:
* financial qualifications,
* personnel,
* experience,
* references,
* size bonding capability,
* special qualities that make them partcularly suited for the project
26
The two primary ways to notify proespective bidders...
1) advertising in newspapers or trade journals
2) invitation to bid
27
With and advertisement for bids, the following information is published in one or more newspapers... (12)
1. A call for bids is being made
2. Project name and location
3. Owner & Architect's name and address
4. Description of the project, including building type, size, principal construction materials and systems, and other pertinent info
5. Date, time, and location bids are due
6. How and where bidding documents can be obtained / viewed, and deposit if required
7. Security requirements
8. Type and amount of bid bonds required
9. Procedure for submitting bids
10. Construction start & end dates
11. Form of contract
12. Other info, such as owner's right to waive irregularities of bidding process or to accept bids other than lowest
28
What is an **addendum**?
1. A written or graphic document issued by the architect prior to the execution of the contract that modifies or interprets the bidding documents by addition, deletion, clarification, or correction
2. It is sent to all registered bidders not later than 4 - 5 days before receipt of bids to give all bidders ample opportunity to study the document and modify their proposals accordingly
29
When distributing bids and addenda to contractors, it is important to track what?
**Who is being provided** with the documents.
30
An addendum should be issued NO LATER than this time.
4 working days prior to bid close
31
What is a good rule of thumb for the **length of a bid period**?
1. large/complex project (open bid)
2. small (invited)
1. 4-6 weeks
2. 2 weeks
32
When is the ideal time/day to **close a bid**? (3)
1. Not on a Mon, Fri, or following a holiday
2. Mid-afternoon
3. Best to indicate '**before**' 2pm rather than 'on' or 'at'
33
What is the function of a **bid depository**?
These are operated by local construction associations. They collect and register **bids from subs/suppliers and supply them to GCs**.
34
What is a **pre-bid conference**?
1. Meeting with archtiect, owner, and bidders during which bidders can ask questions and the architect and owner can emphasize particularly impostant conditions of the project
2. Notes of conference should be sent to all bidders, whether or not they were in attandance
35
After bids have been closed, a decision of awade is typically made after...
...10 days
36
if all the bids exceed the project budget and the Owner-Architect Agreement fixes a limit on constriction, the owner has one of four options...
1) to rebid (or renegotiate if a negotiated contract)
2) to authorize an increase in the construction cost and proceed with the project
3) to work with the architect in revising the scope of the project to reduce construction cost
4) to abandon the project
37
What do **bidding documents** include?
1. Advertisement to bid
2. Instruction to bidders
3. Supplementary instructions to bidders (if any)
4. Bid forms
5. Bid security information
6. Performance bond (if required)
7. Labor and material payment bond (if required)
38
After the award of the bid, the contractor must submit what to the archtiect
1. contractor's qualification statement, unless it has already been submitted as part of the bidding process
2. designation of the work to be performed with the contractor's own forces
3. names of the manufacturer's, the products, and the supplier of the principal items proposed for the project
4. the names of the persons or companies proposed to perform major portions of the work
39
What is **Bid security**?
1. required to ensure that the successful bidder will enter into a contract with the owner
2. certified check, cashier's check, or bid bond
40
If the successful bidder does not enter into an agreement...
the **bid security** _may be retained_ to compensate for the difference between the low bid and the next lowest bidder
41
What is a **performance bind**?
1. Statement by a surety company that obligates the surety company to complete construction on the project should the contractor default on his or her obligations
2. If contractor defaults, the surety company may hire another contractor or supply additional money to defaulting contractor to allow construction to proceed
3. Cost of performance bond is paid by **owner** and is usually **included in amount of the construction price**
4. It only includes completion of project, not payment of labour & materials
42
What is the usefulness of a **bond**?
It guarantees that the GC will stisfactorily perform the work outlined in the contract.
43
What are the **3 main types of bonds**?
1. Bid Bond (CCDC 220)
2. Performance Bond (CCDC 221)
3. Labour & Materials Bond (CCDC 222)
44
What is a good rule of thumb when estimating an appropriate **performance bond value**?
50% or 100% of contract amount
\*\*does not cover costs of labour & material
45
What is announced at the bid opening?
1. Bidder's Name
2. Base Bid Amount only
3. Rqrd bid/security bond
46
What must an owner obatin **in addition** to a perofrmance bond?
Labor and material bonds
47
Advantages of alternates in bids? (2)
1. Flexibility in modifying the cost of the project when the bids are in by varying the quantity / quality of the project
2. Allow owner to select certain options based on firm prices rather than on preliminary estimates
Add alternates = increase base bid
Deduct alternates = reduce base bid
48
What are **unit prices**?
1. Set costs for certain portions of work based on individual quantities
2. They are listed on the bid form and provide a basis for determining changes to the contract
Example: a square foot costs for asphalt paving may be requested if the full extent of paving is unknown when bids are received
49
What type of bidding is required for **government funded** projects?
Public bidding
50
Which of the following _project delivery methods_ always requires preparation of **several individual bid-document** packages?
Fast track
51
In developing **a list of bidders** for a private project, the architect’s role is to
Recommened qualified contractors
52
After considering all bids, the owner favors a bid with irregularities. The owner:
a) has the right to waive irregularities and accept the bid
b) has the right to extend the bidding period for corrections
c) must informally request corrections from the bidder
d) must only consider bids without irregularities
a) has the right to waive irregularities and accept the bid
53
. Which of the following is an appropriate agenda item for the prebid conference?
a) Occupancy-permit procedures
b) Notification of future addenda
c) Pre-commissioning procedures
d) Status of change orders
b) Notification of future addenda
54
Architect estimates of construction costs based on final documents should consider which of the following?
a) Known change order sums
b) The bidding climate
c) The amount of monthly certificate of payment
d) The amount of retainage
b) The bidding climate
55
A preconstruction conference is generally held in order to
a) review bonds and affidavits
b) determine whether a performance bond and a payment bond are required
c) discuss changes to completed work
d) clarify responsibilities and operating procedures
d) clarify responsibilities and operating procedures
56
Which of the following are considered **security** for a project? Check the two that apply.
A. Bid Bond
B. Payment Bond
C. Completion Bond
D. Performance Bond
E. Certified check
A. Bid Bond
E. Certified check
57
Which of the following methods of contractor compensation would an owner be more likely to choose when the _construction time_ is limited and the _design criteria or construction cost is secondary_ to meeting the deadline for completion?
o Cost-plus-fee
o Cost-plus-fee with a guaranteed maximum price
o Stipulated sum
o Unit price
Cost-plus-fee
58
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
a. prior to receipt of bids
- may be issued in response to errors discovered in the building documents, changes the client wants to make, questions from bidders, or additiona or deletions needed
- sent to all bidders at least 4 days prior to the bid date
- usually asks bidders to acknowledge receipt of addenda
59
an architect's signature on a certificate of payment indicates that the architect has:
a. inspected and accepted the work performed
b. reviewed the invoices submitted to the contractor by subcontractors
c. verified that the contractor is entitled to payment for work performed to date
d. received payment for work performed to date
c. verified that the contractor is entitled to payment for work performed to date
1. Receiving an application for payment from the contractor, the architect has **7 days** to review the _work performed_ and determine whether the _level of quality_ of the work matches that defined by the contract documents
2. If both attribtues are present, the archtiect will issue a Certificate of payment to the Owner for the amount requested by the Contractor
3. Architect has the _option of rejecting the application_ or _cerifying a lesser amount_
4. **Does not mean** the architect has inspected the work
60
According to Instructions to Bidders, bids must be submitted on:
a. standard bid forms
b. the contractors standard bid form
c. forms provided with the bidding documents
d. forms provided by the owner
c. forms provided with the bidding documents
Forms may be _tailored to the project_ including a listing of alternates and unit prices, and by asking for acknowledgement of any addenda issued during the bid phase
61
During the bidding, a contractor wants to propose a substitution of a material specified in the contract documents. The request for substitution must be received by the architect ___ days prior to the receipt of bids
10 days
1. No subs can be considered unless a written request for such approval has been received by the architect on time
2. If subs are approved, architect must issue **an addendum** for the sub approval no later than 4 days prior to the date of receipt of bids.
62
Bid documents for an elementary school indicate an area of exterior concrete paving with an indtermediate limit because the owner has not made a final decision concerning the amount of paved area required. 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 prices
d. contingencies
b. unit prices
Price based on cost per unit of measurement
63
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
b. addendum
64
which of the following may be part of the bidding documents
a. specs
b. invitation to bid
c. list of approved subcontractors
d. owner-contractor agreement
e. performance bond
ABCDE
All items listed can be included
65
What is an **open bidding**?
1. **Anyone** can bid, regardless of experience
2. Encourages a **variety** of contractors to participate
3. Can be **difficult to evaluate qualified** bidders
4. Cost and complexity of **advertising and administering** the bidding process may increase
66
What is 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 having a third party responsible for completing the work if the contractor does not
d. protects the owner having a third party responsible for completing the work if the contractor does not
67
which of the following variable has the greatest impact on a bid?
a. the contractor's profit margin
b. the influences of the construction marketplace
c. labor and materials
d. subcontractor bids
c. labor and materials
Represent about **80% of cost,** influence the amount of subcontractor bids
68
Procedures a bidder must follow to propose a substitution will be found in the...
...instructions to bidders
69
If it is in the architect's services to perform an analysis of bids, what 8 aspect of the bid should be compared?
1. COMPLETENESS inclusion of all addenda
2. BID AMOUNT
3. PROPOSED CONST. START/END
4. SUB-CONTRACTORS LISTED inc. follow up of references
5. MANUFACTURERS / SUPPLIERS inc. follow up of references
6. ALTERNATIVES
7. UNIT PRICES
70
If the architect has prepared an analysis of the bids for the client what 3 **letters/notifications** should follow the analysis?
1. **Letter to Client** reporting on bids
* List price of each compliant bid
* Describe recommended bid: const. time, bid $ + alternates
2. **Letter of Acceptance** (\*\*\*not letter of intent = bad practice)
* to successful GC
* allows GC to start work ASAP while contract drafted
3. **Notification to unsuccessful bidders**
* must be done promptly so they can arrange bonds and bid on other work
71
When an owner wants to make sure some amount of money is included in the bid before the exact spec is for the item is known, the architect should use...
...an allowance
72
The final responsibility for awarding a construction contract rests with the:
a. architect
b. construction manager
c. owner
d. owner's legal counsel
c. owner
Architect is involved in decision making process, but only assists and gives advice
73
Which of the following is the most appropriate way to announce bid results?
a. the archtiect should make a statement at the conclusion of the bid opening identifying the apparent low bidder
b. after evaluating all of the bids, the owner should make a decision of award and the architect should notify the bidders
c. the architect should call all of the bidders and give them the results
d. the owner should publish the bid results in the local newspaper
b. after evaluating all of the bids, the owner should make a decision of award and the architect should notify the bidders
74
What happens duing bid opening?
1. The architect will open the bids, read them aloud, and record in the bid log the base bid amounts, bids for proposed alternates, confirmation of receipt of addenda, and whether required suporting documentation is included with the bid (such as bid bond)
2. Architect shouls not announce the apparent low bidder at the bid opening
75
Instrcutions to Bidders states that the owner may select **any alternates** in any order and that the contract award will be made on the basis of...
...the _combined cost_ determined by the **base bid** and the **accepted alternates**
76
Low bidder is determined by:
_the sum_ of the base bid + cost of additive alternates + credit of deductive alternates
77
Which of these _should be_ included in an **advertisement to bid**?
a. the name and address of the architect
b. the date, time, and location of the pre-bid conference
c. the amount of the deposit required to obtain copies of the bidding documents
d. the names of acceptable subcontractors
e. bid forms
f. the date, time, and location at which bids are due
ABCF
78
An analysis of the **financial feasibility** of a potential project is called a
pro forma
An analysis of the _costs and revenues projected_ for a potential project and should be a part of the owner's initial planning
Required to secure adequate funding for the project from lenders or investors
79
What are the advantages of traditional Design-Bid-Build project delivery?
A) Contractor expertise, construction costs, sequential tendering
B) Competitive tendering, lowest risk factor, most complete design resolution
C) Costs based on quantity, suitable when time is more important than cost, suitable where extraordinary quality is required
D) Single point of responsibility, suitable when faster results are needed
B) Competitive tendering, lowest risk factor, most complete design resolution
80
What are as **constructed drawings**?
drawings that reflect the record of the building project as constructed based in information the contracto provides to the owner under the contract for constuction.
- based on the contractor's markups, so _the archtiect is not responsible for their accuracy or completeness_
- commonly referred to as **as-builts**
81
What are **as-designed record drawings**?
Drawings that reflect the record of everything the archtiect designed for the project, and include:
* the original construction documents
* all addenda
* architect's supplemental instructions
* change orders
* construction change directives, and minor changes
82
What is the difference between the statute of limitations and the statute of repose?
statute of limitations: a specific time frame in which claims must be asserted, _starting from project substantial completion_
statute of repose: a specific time frame in whcih claims must be asserted, _starting from the time the alleged digression_ is discovered
83
What is a **Two-Stage Bid Closing**?
Where extensive bid form suppliants are required
* bid form be submitted at the time of initial bid closing
* supplementary info be submitted at a later time.
this results in more accurate and comprehensive bids and allows bidders more time to create bids
84
Two types of Bid Solicitation
1. Open (Public) Bid Call
2.Invitational Bid Call
(Min 3 ppl Max 6 ppl could have a pre qualification process prior)
85
Explain "Privilege Clause"
owner does not have to accept lowest bid. Owner can re-bid the modified Bid Documents. Should try negotiating with the lowest bidder first, as lowest 3 bidder to rebid or re issue the VERY modified Bid Documents to Everyone.
86
Frequency to put to date construction schedule by contractor?
Every month.
87
Delay to transmit Certificate of payment to Owner after receiving the payment request?
10 days
88
Delay to name a mediator following contract signature?
Delay to name a mediator if one partie asks for it and it hasn't been done originally?
20 days
10 days
89
Delay to resolve an issue to the party receiving a non-satisfaction notification?
5 days
90
Delay to obtain value list to the professionals?
15 days after the first request for payment.
91
Delay that the client has to effectuate final payment to the contractor following receipt of the **final** Certificate of payment?
5 days
92
Mediation lasting .... days?
10 days
93
Delay to release holdback following the issuance of **Holdback** Certificate of Payment?
Depends on province & legislation
Quebec 30 days
94
Delay for owner to supply proof of financial capacity, upon request from contractor?
Promptly
95
Delay that the Contractor has to submit list of substantially finished elements when he estimates that the work is substantially completed?
1 day
96
Delay to advise the other party and professionals that there have been hidden conditions found?
5 days
97
Delay to stop a construction site if there are dangerous substances that can affect safety of workers?
No delay - immediately
98
Delay without received notice that an architect's decision was accepted by the parties (in case of disagreement)?
15 days - the parties have 10 days to respond following to a disagreement. The other party must respond within 10 days, then 10 days negotiations, then 10 days mediation.
99
Delay to period of compensation of parties?
6 years
100
Delay that the Contractor gives the Owner to fix a situation of "failure" before resiliating the contract?
5 days
101
102
Delay to signal a delay in the construction schedule, from start of delay?
10 days
103
Delay to do a substantial completion visite following reception of request by Contractor?
10 days
104
Delay that a Contractor must give the professionals of omissions found on plans?
Immediately
105
Delay that Owner must pay the Contractor?
20 days following the date that the professional has received the request for payment or as of the end of the period of payment.
106
Delay before a notification is transmitted via mail to be considered received?
+ 5 civil days after posting
107
Delay that the professional has to give opinion on a modification request to the price / schedule of the contract following request of one of the parties?
30 days
108
Delay that the Contractor has to correct work that is considered non conforming by the professionals?
Immediately.
109
Delay that the professional has to examine and approve shop drawings?
Per established schedule, if there is one. Otherwise, reasonable delay.
110
Delay for notice to be transmitted via e-mail is expected to be received?
Same day, office hours
111
Time of work stop until Contract can resiliate the contract (if he is not responsible to stop it)?
20 days
112
Delay that the professional must advise on an interpretation of the contractual documents?
A reasonable delay
113
Delay that the professional has to respond to additional information request (RFI) from Contractor?
Not specified - reasonable delay to not delay the work.
114
Delay in which the professional must inform the Owner that he has received a Certificate of Payment request?
Promptly.
115
Delay to present an arbitration request following mediation attempt? If there isn't a request, what is the recourse?
10 days
Possible to amend in front of Tribunal after this.
116
Delay to do Substantial visit (if the work has been substantially completed) following the request by the Contractor
20 days
117
Frequency of Certificates of Payment?
Monthly.
118
Duration of warranty, when does it begin?
1 year - from Substantial Completion date
119
Delay to negotiate before being in obligation to begin mediation, following receipt of one of the parties regarding disagreement witht the progessional's decisions.
10 days
120
Reasons that can allow the Contractor to resiliate the contract?
1. The Owner has not provided proof of financial capacity
2. The professional does not issue Certificates of Payment
3. The Owner does not pay
4. The Owner does not fulfill his obligations and the Professional declares in writing that there isn't a reasonable reason why
5. The Site has been closed by Tribunal for 20 wowrking days and it is not the Contractor's fault
121
CCDC 2 : name 3 main parties
1. Owner
2. Professional
3. Contractor
122
CCDC 2 : name 3 main steps?
1. Design
2. Bidding
3. Construction
123
CCDC 2: name 2 separate contracts?
1. Owner / Professional
2. Owner / Contractor
124
CCDC 2: main characteristics (4)?
1. Open public bidding or invited bidding.
2. Price of contract & schedule cannot be modified without Change orders
3. Contractor must execute the work indicated in contract, regardless of the actual cost.
4. Can give maximum profit for Contractor, who also assumes maximum risk
125
CCDC 14: characteristics (1)?
1. The client deals with a single organisation that provides in the same contract design & construction of the project.
126
Construction Management Contracts (2 types)?
CCDC 5a (services)
CCDC 5b (services & work)
127
What is a CM?
Who hires CM & When?
What does he do?
1. Hired by Owner
2. Consultant that participates in design process & gives opinion on:
* constructability
* cost estimation
* schedule
* bidding
* coordination of contractual negotiations
* contract award
* buying essential materials
* cost control
* coordination of construction activities
128
What types of project require CM & Why?
Complex projects, because
1. Adds a participant (more $)
2. Architect acts as a CM for the smaller projects (expansion / renovation)
129
What types of authority can be given to the CM?
1. Advispr during a particular phase of the design or construction
2. Coordinator of construction, when Owner contacts independently the sub-trades
130
What could be the profession of a CM?
1. Architect
2. Engineer
3. Contractor
4. Developper
131
How can the Owner make economies in terms of work cost?
Project delivery that returns all economies to the client done through the sub-trades bids with an "open book" transparent bidding.
132
What are the Design-Build contracts?
CCDC 14: Design-Build & Owner
CCDC 15: Design-Build & Professional (sub contract)
133
Design Build : contract with whom?
The architect can be in a contract with the Design-Builder
OR
The architect is himself the Design-Builder and hires the Contractor.
134
2 phases of the Design-Build Contract?
1. Competition between Design-Builders
- provides architectural design solutions
- on the basis of the design, the design-builder provides a maximum stipulated price, which includes the fees of professionals and construction administration
2. The Design-Builder and his Client sign a CCDC 14.
135
There is a different type of contract which can be used for Design-Build? Why?
A cost-price with a maximum cost
The Design-Builder works to reduce the cost of the project. All savings goes back to owner, which only pays the real construction cost + profit.
136
P3 contract type?
No standard contract available.
137
P3 characteristics?
Type of partnership between public & private sectors in which financing, design, construction (capital costs), exploitation & maintenance of the public projects is done through financing & private funds
138
List 6 other types of project delivery methods?
1. Project Management
2. Just-in-time
3. Turnkey Development
4. Unit Rates
5. Lease-back
6. Cost Plus
139
What is **project management**?
The PM has a contract with the Owner and in turn hires the consultants & Contractor
* same 3 phases as conventional construction, or
* bidding in sequence to accelerate construction process
140
What is the difference between a **project manager** & a **construction manager**?
**Project manager:**
Has a contract with the Owner, hires his architect & contractor
The architect does NOT have a direct link with Owner.
**Construction manager:**
The Owner hires architect, engineers, and construction manager.
141
What is the **just-in-time** delivery method?
One large project is subdivided into **smaller work packages**.
Small teams of architects & contractors design & build on hourly basis driven mostly by **schedule**.
142
What does **turnkey** development include (3)?
1. Design
2. Construction
3. Real Estate functions: site acquisition, entitlements, construction and / or long term financing or others
143
What is a **unit rate** method? Used on what types of projects?
Heavy civil engineering work. or Repetitive units / identical buildings.
Contractor is paid in measured quantities at quoted unit rates. Architect must ensure unit rates are applied only to design & documentation phases.
144
What is the **lease-back** method?
Project is financed, constructed & owned by builder, and the building is "leased-back" to the Owner.
145
What is the cost plus method? Which Contract?
CCDC 3
"Times & materials". Schedule more important than cost. Work can begin before end of design. No incentive to reduce cost.
Contractor compensated for actual costs of the work + fee. Fee based on agreed-upon sun or % of the work.
Prefer to use Construction Management, which has many of these advantages, less inconvenients.
146
Which project method is **prohibited** in most provinces?
Project Management
147
Name 4 contracts between Owner & Contractor?
Which one is the most widely used?
1. **CCDC 2: Stipulated Price Contract**
2. CCDC 3: Cost Plus Contract
3. CCDC 4: Unit Price Contract
4. CCDC 14: Design-Build Stipulated Price Contract
148
Which contract type the sum of the contract is established **before** the design is complete, which can create disagreements?
Design-Build Stipulated Price Contract (CCDC 14)
149
In which type of contract the Owner can be reimbursed part of the cost?
CCDC 3: Cost Plus Contract
150
Which type of contract Owner / Constructor is appropriate for projects where it is difficult to establish total cost in advance?
CCDC 3 : Cost Plus Contract.
151
What happens if the maximum cost has not been reached in a Cost Plus contract CCDC 3?
The balance can be divided between Owner & Constructor.
152
CCDC 4 : characteristics?
1. Contractor paid for unitary prices of units of work / material
2. Prices established by bidding or negotiation
3. Limited use, mostly civil.
153
What is the difference between CCDC 5a & CCDC 5b?
CCDC 5a: Construction Management (services)
CCDC 5b: Construction Management (services and work)
154
Why use the CCDC documents?
1. Known in the construction industry.
2. Equal, uniform, just & normalized for bidding & contract.
155
156
Name 2 objectives of the CCDC documents?
1. Protect the interests of all parties.
2. Maintain rights, without attributing excessive risk to either party.
157
What types of documents does CCDC publish?
Contracts
Guides
Normalized forms
Bulletins
158
Name 2 responsibilities of the architect during bidding?
1. Assist & consult the client.
2. Provide bidders with necessary information on the contract documents.
159
Name 4 phases of the bidding process:
1. Notice of Tender
2. Additions / modifications: addenda
3. Bid opening
4. Analysis
160
What to include in Instructions to bidders? (4)
1. Bidding form
2. Bid bond requirements
3. Bid commitment letter & deposit
4. Information regarding meeting prior to bidding.
161
What do the contract form include as documents ? (2)
1. Model contract, with general conditions.
2. Supplemental conditions.
162
What do supplemental conditions include ? (4)
1. Required insurances
2. Required bond
3. Money allocations
4. Allocations for unknowns.
163
What are the different types of bonds (3)?
1. **Bid Bond**: guarantees to Owner that the bid is accepted within the accepted delay, the Contractor will sign a contract with the Owner. 5%-10% of total cost.
2. **Performance Bond**: indemnify Owner up to the amount of the bond in the event of default (bankruptcy or insilvency) of the Contractor. 50%-100% of total cost.
3. **Labour and Material Payment Bond**: guarantees that the claimants (subs) will be paid for labour and materials provided to the contractor.
164
What would make bond non-compliant? (5)
1. doesn't meet basic requirements (sealed envelope)
2. doesn't indicate correct number of addenda
3. not accompanied by bid bond or bid security requested
4. is not properly signed or sealed
5. bonding requirements are not submitted (Consent of surety or agreement of bond)
165
Who provides the performance bond amount?
Financial institution (surety). The bond would be paid for by the **party providing the services** (Constructor).
166
Complete list of the bid package (7)
1. **Bid Information & Requirements** (Instructions to bidders: bid form, bid security (bonds), undertaking to bond, pre-bid info & meeting)
2. **Contract Forms & Bond Requirements** (model contract incl. gen conditions, supplementary conditions: insurance, bonds, allowances)
3. **Specifications**
4. **Site Information** (utilities, legal & topo surveys, geotechnical report, environmental report)
5. **Drawings** (drawings & schedules)
6. **Construction Scheduling Restrictions & Milestones** (phasing & occupancy requirements)
7. **Addenda**
167
If a GC _fails to pay_ a subcontractor, the subcaontractor can protect its financial interests by using :
a. a performance bond
b. a conractor's affidavit of payment
c. builder's risk insurance
d. a mechanic's lien
d. a mechanic's lien
- a mechanic's lien is a claim by one party against the property of another party for the satisfaction of a debt
- used by a material supplier, subcontractor, or contractor who has a financial interest in the project ro gain payment
168
as an alternative to liens...
...a **labor and material payment bond** can protect the owner against claims by subcontractors and suppliers who are not paid by the GC
-bond gives these parties right to collect payment from the surety (company that issued the bond)
169
When deciding on the **types of insurance** needed for a project, which of the professionals whould the owner rely on?
Owner should seek advice from his or **legal counsel** and isurance agent on matter of insurance
Architect _should not_ give legal advice
Contractor should only be involved with the various types of insurance that contractors must carry for the project
170
This firm requests that the owner consult with legal insurance counsel to discuss issues that will be addressed in the supplementary conditions and in the contract documents. This form does not request information about
a. liability insurance requirements
b. design schedule
c. method of procurement
d. equal opportunity requirements
b. design schedule
171
What is a **bid documents distribution list**?
List used to identify all bidders, record deposits for documents, distribution list for addenda, checklist to secure return of documents.
172
What is an **addendum**?
Will become part of the construction contract. Addenda may contain revised or additional drawings. Must be distributed to all the bidders at the same time, in the same manner, no later than 4 days prior to bid closing.
173
What is a **summary of bids**?
Form to record bids & analyse them.
Easy comparison & analysis. Identifies non-compliant bids, preliminary record during bid opening.
174
What is a **letter of acceptance**?
Issued by the client / owner, but architect may be preparing it.
It notifies a successful bidder of the contract award. It permits work to start immediately pending preparation of contract.
175
What is a **letter to unsuccessful bidders**?
Informing unsuccessful bidders in timely manner of award of contract. By architect or client.
176
What is **letter informing client of bids**?
