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EXAC EXAM 4 CL > 1. Bidding & Negotiations > Flashcards

1. Bidding & Negotiations Flashcards

1
Q

What does CCDC stand for?

A

Canadian Construction Documents Committee

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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
  1. CCDC 2

Stipulated Price Contract

Design-Bid-Build

  1. CCDC 3a

Cost Plus Contract (% or fixed fee)

Design-Bid-Build

  1. CCDC 3b

Cost Plus Contract (guaranteed max. price)

Time & Materials

  1. CCDC 4

Unit Price Contract

Max Upset Price

  1. CCDC 5

Canadian Standard CM Contract Form btwn Owner CM

Construction Management

  1. DOC 14

Design-Build Stipulated Price Contract

Design-Build

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3
Q

List the 4 main types of project delivery:

A

Design-Bid-Build

Construction Management

Design-Build

Public Private Partnership (p3)

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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

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5
Q

List the advantages of a design-bid-build project: (5)

A
  1. Common/familiar
  2. Clear roles
  3. Transparent
  4. Design resolution prior to constr.
  5. Direct professional relationship w O & A
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6
Q

List the disadvantages of a design-bid-build project (4):

A
  1. No constr. input during design
  2. O see more ‘extras’
  3. GC unknown during design
  4. Contracts (Public - go to low bid)
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7
Q

What types of projects are best suited for a cost plus delivery method? (3)

A
  1. Fast projects (can start before design complete)
  2. High quality needed
  3. Unknowns

Use CCDC 3

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8
Q

What risks are associated with Cost Plus project delivery? (3)

A
  1. No incentive to avoid cost overrun
  2. project cost is unknown
  3. Not allowed for public proj.
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9
Q

What are 3 common ways to calculate the GC fee for Cost Plus projects?

A
  1. Agreed upon fixed sum
  2. % of cost of work
  3. % of cost of work to max upset
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10
Q

Why would an Owner add a CM to the team? To oversee (3)

A

to oversee:

  1. schedule
  2. cost
  3. construction method
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11
Q

What are the 3 possible roles for a CM and their corresponding contract forms?

A
  1. CM as Advisor - CCDC 5a
  • O contracts each of the 3 parties separately (CM, Architect, Contractor)
  • higher administrative costs
  • can confuse roles & responsibilities
  1. 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
  1. CM as Constructor
  • hired prior to completion of design
  • shifts all risk to GC
  • typ. more expensive
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12
Q

What project delivery method often takes the name ‘Project Management’?

A

CM as Agent (representing Owner)

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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
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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)
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15
Q

What does the organizational structure of Design-Build project w Bridging look like?

A
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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

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17
Q

What are the advantages of a design-build project delivery method? (3)

A
  1. Single point of responsibility
  2. Faster than traditional method
  3. In DB competition, GC more motivated to provide cost savings /value
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18
Q

What are some disadvantages of the Design-Build project delivery method?

A
  1. Cost savings could be in conflict w building quality & maintenance costs
  2. More complex process than CM
  3. The owner is disconnected from the DB Architect & Engineers
  4. More risk than CM
  5. Too difficult / costly for one-off building types

*w bridging: CM is often faster

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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.

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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

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21
Q

What are the advantages of a P3 project delivery method? (5)

A
  1. Efficiencies & expertise of private sector
  2. Life cycle costs reduced if operated by private
  3. Single point of responsibility
  4. Reduced time /const. schedule
  5. Design is often the deciding factor in proposal selection
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22
Q

What are the disadvantages of a P3 project delivery method? (5)

A
  1. transfers risk to private sector
  2. ‘best value’ not always acheived (more like best $$)
  3. lack of communication btwn O and A
  4. building users have less control over outcome
  5. professional liability insurance hard to get (particularly for small firms)
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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

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24
Q

What are the 7 steps of bidding & tendering?

A
  1. Decide how Owner will Obtain Bids
  2. Preparing Bid Package
  3. Distribution of Bid Docs
  4. Addenda
  5. Bid Period & Bid Closing
  6. Analysis of Bids
  7. Contract Award
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25
Q

Prequalification of contractors is based on…

A

…information submitted by contractos concerning their:

  • financial qualifications,
  • personnel,
  • experience,
  • references,
  • size bonding capability,
  • special qualities that make them partcularly suited for the project
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26
Q

The two primary ways to notify proespective bidders…

A

1) advertising in newspapers or trade journals
2) invitation to bid

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27
Q

With and advertisement for bids, the following information is published in one or more newspapers… (12)

A
  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
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28
Q

What is an addendum?

A
  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
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29
Q

When distributing bids and addenda to contractors, it is important to track what?

A

Who is being provided with the documents.

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30
Q

An addendum should be issued NO LATER than this time.

A

4 working days prior to bid close

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31
Q

What is a good rule of thumb for the length of a bid period?

  1. large/complex project (open bid)
  2. small (invited)
A
  1. 4-6 weeks
  2. 2 weeks
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32
Q

When is the ideal time/day to close a bid? (3)

A
  1. Not on a Mon, Fri, or following a holiday
  2. Mid-afternoon
  3. Best to indicate ‘before’ 2pm rather than ‘on’ or ‘at’
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33
Q

What is the function of a bid depository?

A

These are operated by local construction associations. They collect and register bids from subs/suppliers and supply them to GCs.

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34
Q

What is a pre-bid conference?

A
  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
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35
Q

After bids have been closed, a decision of awade is typically made after…

A

…10 days

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36
Q

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…

A

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

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37
Q

What do bidding documents include?

A
  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)
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38
Q

After the award of the bid, the contractor must submit what to the archtiect

A
  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
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39
Q

What is Bid security?

A
  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
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40
Q

If the successful bidder does not enter into an agreement…

A

the bid security may be retained to compensate for the difference between the low bid and the next lowest bidder

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41
Q

What is a performance bind?

A
  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
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42
Q

What is the usefulness of a bond?

A

It guarantees that the GC will stisfactorily perform the work outlined in the contract.

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43
Q

What are the 3 main types of bonds?

A
  1. Bid Bond (CCDC 220)
  2. Performance Bond (CCDC 221)
  3. Labour & Materials Bond (CCDC 222)
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44
Q

What is a good rule of thumb when estimating an appropriate performance bond value?

A

50% or 100% of contract amount

**does not cover costs of labour & material

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45
Q

What is announced at the bid opening?

A
  1. Bidder’s Name
  2. Base Bid Amount only
  3. Rqrd bid/security bond
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46
Q

What must an owner obatin in addition to a perofrmance bond?

A

Labor and material bonds

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47
Q

Advantages of alternates in bids? (2)

A
  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

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48
Q

What are unit prices?

A
  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

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49
Q

What type of bidding is required for government funded projects?

A

Public bidding

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50
Q

Which of the following project delivery methods always requires preparation of several individual bid-document packages?

A

Fast track

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51
Q

In developing a list of bidders for a private project, the architect’s role is to

A

Recommened qualified contractors

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52
Q

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

a) has the right to waive irregularities and accept the bid

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53
Q

. 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

A

b) Notification of future addenda

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54
Q

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

A

b) The bidding climate

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55
Q

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

A

d) clarify responsibilities and operating procedures

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56
Q

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

A. Bid Bond

E. Certified check

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57
Q

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

A

Cost-plus-fee

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58
Q

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

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

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59
Q

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

A

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
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60
Q

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

A

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

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61
Q

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

A

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.
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62
Q

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

A

b. unit prices

Price based on cost per unit of measurement

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63
Q

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

A

b. addendum

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64
Q

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

A

ABCDE

All items listed can be included

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65
Q

What is an open bidding?

A
  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
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66
Q

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

A

d. protects the owner having a third party responsible for completing the work if the contractor does not

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67
Q

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

A

c. labor and materials

Represent about 80% of cost, influence the amount of subcontractor bids

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68
Q

Procedures a bidder must follow to propose a substitution will be found in the…

A

…instructions to bidders

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69
Q

If it is in the architect’s services to perform an analysis of bids, what 8 aspect of the bid should be compared?

A
  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
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70
Q

If the architect has prepared an analysis of the bids for the client what 3 letters/notifications should follow the analysis?

A
  1. Letter to Client reporting on bids
  • List price of each compliant bid
  • Describe recommended bid: const. time, bid $ + alternates
  1. Letter of Acceptance (***not letter of intent = bad practice)
  • to successful GC
  • allows GC to start work ASAP while contract drafted
  1. Notification to unsuccessful bidders
    * must be done promptly so they can arrange bonds and bid on other work
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71
Q

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…

A

…an allowance

72
Q

The final responsibility for awarding a construction contract rests with the:

a. architect
b. construction manager
c. owner
d. owner’s legal counsel

A

c. owner

Architect is involved in decision making process, but only assists and gives advice

73
Q

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

A

b. after evaluating all of the bids, the owner should make a decision of award and the architect should notify the bidders

74
Q

What happens duing bid opening?

A
  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
Q

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…

A

…the combined cost determined by the base bid and the accepted alternates

76
Q

Low bidder is determined by:

A

the sum of the base bid + cost of additive alternates + credit of deductive alternates

77
Q

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

A

ABCF

78
Q

An analysis of the financial feasibility of a potential project is called a

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
Q

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

A

B) Competitive tendering, lowest risk factor, most complete design resolution

80
Q

What are as constructed drawings?

A

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
Q

What are as-designed record drawings?

A

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
Q

What is the difference between the statute of limitations and the statute of repose?

A

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
Q

What is a Two-Stage Bid Closing?

A

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
Q

Two types of Bid Solicitation

A
  1. Open (Public) Bid Call
    2.Invitational Bid Call
    (Min 3 ppl Max 6 ppl could have a pre qualification process prior)
85
Q

Explain “Privilege Clause”

A

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
Q

Frequency to put to date construction schedule by contractor?

A

Every month.

87
Q

Time limit to transmit Certificate of payment to Owner after receiving the payment request?

A

10 days

88
Q

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?

A

20 days

10 days

89
Q

Delay to resolve an issue to the party receiving a non-satisfaction notification?

A

5 days

90
Q

Delay to obtain value list to the professionals?

A

15 days after the first request for payment.

91
Q

Delay that the client has to effectuate final payment to the contractor following receipt of the final Certificate of payment?

A

5 days

92
Q

Mediation lasting …. days?

A

10 days

93
Q

Delay to release holdback following the issuance of Holdback Certificate of Payment?

A

Depends on province & legislation

Quebec 30 days

94
Q

Delay for owner to supply proof of financial capacity, upon request from contractor?

A

Promptly

95
Q

Delay that the Contractor has to submit list of substantially finished elements when he estimates that the work is substantially completed?

A

1 day

96
Q

Delay to advise the other party and professionals that there have been hidden conditions found?

A

5 days

97
Q

Delay to stop a construction site if there are dangerous substances that can affect safety of workers?

A

No delay - immediately

98
Q

Delay without received notice that an architect’s decision was accepted by the parties (in case of disagreement)?

A

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
Q

Delay to period of compensation of parties?

A

6 years

100
Q

Delay that the Contractor gives the Owner to fix a situation of “failure” before resiliating the contract?

A

5 days

101
Q
A
102
Q

Delay to signal a delay in the construction schedule, from start of delay?

A

10 days

103
Q

Delay to do a substantial completion visite following reception of request by Contractor?

A

10 days

104
Q

Delay that a Contractor must give the professionals of omissions found on plans?

A

Immediately

105
Q

Delay that Owner must pay the Contractor?

A

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
Q

Delay before a notification is transmitted via mail to be considered received?

A

+ 5 civil days after posting

107
Q

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?

A

30 days

108
Q

Delay that the Contractor has to correct work that is considered non conforming by the professionals?

A

Immediately.

109
Q

Delay that the professional has to examine and approve shop drawings?

A

Per established schedule, if there is one. Otherwise, reasonable delay.

110
Q

Delay for notice to be transmitted via e-mail is expected to be received?

A

Same day, office hours

111
Q

Time of work stop until Contract can resiliate the contract (if he is not responsible to stop it)?

A

20 days

112
Q

Delay that the professional must advise on an interpretation of the contractual documents?

A

A reasonable delay

113
Q

Delay that the professional has to respond to additional information request (RFI) from Contractor?

A

Not specified - reasonable delay to not delay the work.

114
Q

Delay in which the professional must inform the Owner that he has received a Certificate of Payment request?

A

Promptly.

115
Q

Delay to present an arbitration request following mediation attempt? If there isn’t a request, what is the recourse?

A

10 days

Possible to amend in front of Tribunal after this.

116
Q

Delay to do Substantial visit (if the work has been substantially completed) following the request by the Contractor

A

20 days

117
Q

Frequency of Certificates of Payment?

A

Monthly.

118
Q

Duration of warranty, when does it begin?

A

1 year - from Substantial Completion date

119
Q

Delay to negotiate before being in obligation to begin mediation, following receipt of one of the parties regarding disagreement witht the progessional’s decisions.

A

10 days

120
Q

Reasons that can allow the Contractor to resiliate the contract?

A
  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
Q

CCDC 2 : name 3 main parties

A
  1. Owner
  2. Professional
  3. Contractor
122
Q

CCDC 2 : name 3 main steps?

A
  1. Design
  2. Bidding
  3. Construction
123
Q

CCDC 2: name 2 separate contracts?

A
  1. Owner / Professional
  2. Owner / Contractor
124
Q

CCDC 2: main characteristics (4)?

A
  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
Q

CCDC 14: characteristics (1)?

A
  1. The client deals with a single organisation that provides in the same contract design & construction of the project.
126
Q

Construction Management Contracts (2 types)?

A

CCDC 5a (services)

CCDC 5b (services & work)

127
Q

What is a CM?

Who hires CM & When?

What does he do?

A
  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
Q

What types of project require CM & Why?

A

Complex projects, because

  1. Adds a participant (more $)
  2. Architect acts as a CM for the smaller projects (expansion / renovation)
129
Q

What types of authority can be given to the CM?

A
  1. Advispr during a particular phase of the design or construction
  2. Coordinator of construction, when Owner contacts independently the sub-trades
130
Q

What could be the profession of a CM?

A
  1. Architect
  2. Engineer
  3. Contractor
  4. Developper
131
Q

How can the Owner make economies in terms of work cost?

A

Project delivery that returns all economies to the client done through the sub-trades bids with an “open book” transparent bidding.

132
Q

What are the Design-Build contracts?

A

CCDC 14: Design-Build & Owner

CCDC 15: Design-Build & Professional (sub contract)

133
Q

Design Build : contract with whom?

A

The architect can be in a contract with the Design-Builder

OR

The architect is himself the Design-Builder and hires the Contractor.

134
Q

2 phases of the Design-Build Contract?

A
  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
Q

There is a different type of contract which can be used for Design-Build? Why?

A

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
Q

P3 contract type?

A

No standard contract available.

137
Q

P3 characteristics?

A

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
Q

List 6 other types of project delivery methods?

A
  1. Project Management
  2. Just-in-time
  3. Turnkey Development
  4. Unit Rates
  5. Lease-back
  6. Cost Plus
139
Q

What is project management?

A

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
Q

What is the difference between a project manager & a construction manager?

A

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
Q

What is the just-in-time delivery method?

A

One large project is subdivided into smaller work packages.

Small teams of architects & contractors design & build on hourly basis driven mostly by schedule.

142
Q

What does turnkey development include (3)?

A
  1. Design
  2. Construction
  3. Real Estate functions: site acquisition, entitlements, construction and / or long term financing or others
143
Q

What is a unit rate method? Used on what types of projects?

A

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
Q

What is the lease-back method?

A

Project is financed, constructed & owned by builder, and the building is “leased-back” to the Owner.

145
Q

What is the cost plus method? Which Contract?

A

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
Q

Which project method is prohibited in most provinces?

A

Project Management

147
Q

Name 4 contracts between Owner & Contractor?

Which one is the most widely used?

A
  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
Q

Which contract type the sum of the contract is established before the design is complete, which can create disagreements?

A

Design-Build Stipulated Price Contract (CCDC 14)

149
Q

In which type of contract the Owner can be reimbursed part of the cost?

A

CCDC 3: Cost Plus Contract

150
Q

Which type of contract Owner / Constructor is appropriate for projects where it is difficult to establish total cost in advance?

A

CCDC 3 : Cost Plus Contract.

151
Q

What happens if the maximum cost has not been reached in a Cost Plus contract CCDC 3?

A

The balance can be divided between Owner & Constructor.

152
Q

CCDC 4 : characteristics?

A
  1. Contractor paid for unitary prices of units of work / material
  2. Prices established by bidding or negotiation
  3. Limited use, mostly civil.
153
Q

What is the difference between CCDC 5a & CCDC 5b?

A

CCDC 5a: Construction Management (services)

CCDC 5b: Construction Management (services and work)

154
Q

Why use the CCDC documents?

A
  1. Known in the construction industry.
  2. Equal, uniform, just & normalized for bidding & contract.
155
Q
A
156
Q

Name 2 objectives of the CCDC documents?

A
  1. Protect the interests of all parties.
  2. Maintain rights, without attributing excessive risk to either party.
157
Q

What types of documents does CCDC publish?

A

Contracts

Guides

Normalized forms

Bulletins

158
Q

Name 2 responsibilities of the architect during bidding?

A
  1. Assist & consult the client.
  2. Provide bidders with necessary information on the contract documents.
159
Q

Name 4 phases of the bidding process:

A
  1. Notice of Tender
  2. Additions / modifications: addenda
  3. Bid opening
  4. Analysis
160
Q

What to include in Instructions to bidders? (4)

A
  1. Bidding form
  2. Bid bond requirements
  3. Bid commitment letter & deposit
  4. Information regarding meeting prior to bidding.
161
Q

What do the contract form include as documents ? (2)

A
  1. Model contract, with general conditions.
  2. Supplemental conditions.
162
Q

What do supplemental conditions include ? (4)

A
  1. Required insurances
  2. Required bond
  3. Money allocations
  4. Allocations for unknowns.
163
Q

What are the different types of bonds (3)?

A
  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
Q

What would make bond non-compliant? (5)

A
  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
Q

Who provides the performance bond amount?

A

Financial institution (surety). The bond would be paid for by the party providing the services (Constructor).

166
Q

Complete list of the bid package (7)

A
  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
Q

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

A

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
Q

as an alternative to liens…

A

…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
Q

When deciding on the types of insurance needed for a project, which of the professionals whould the owner rely on?

A

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
Q

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

A

b. design schedule

171
Q

What is a bid documents distribution list?

A

List used to identify all bidders, record deposits for documents, distribution list for addenda, checklist to secure return of documents.

172
Q

What is an addendum?

A

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
Q

What is a summary of bids?

A

Form to record bids & analyse them.

Easy comparison & analysis. Identifies non-compliant bids, preliminary record during bid opening.

174
Q

What is a letter of acceptance?

A

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
Q

What is a letter to unsuccessful bidders?

A

Informing unsuccessful bidders in timely manner of award of contract. By architect or client.

176
Q

What is letter informing client of bids?

A
177
Q

3 Distinct phases for Stipulated Price Contract?

A

1) Owner engages architect to prepare design, drawings.
2) Onwer hiers contractor by ompetitive bid to build under the construction contract
3) architect administers the contract and reviews/certifies construction.

EXAC EXAM 4 CL (5 decks)

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