9 Bidding & Contract Negotiation Flashcards
List the contract form & type of const. delivery for each:
CCDC 2
CCDC 3a
CCDC 3b
CCDC 4
CCDC 5
DOC 14
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 O CM
- Construction Management
DOC 14
- Design-Build Stip. Price Contract
- Design-Build
List the 4 main types of project delivery:
- Design-Bid-Build
- Construction Management
- Design-Build
- Public Private Partnership (p3)
List the advantages of a design-bid-build project: (5)
- common/familiar
- clear roles
- transparent
- design resolution prior to constr.
- direct professional relationship w O & A
List the disadvantages of a design-bid-build project:
- no constr. input during design
- O see more ‘extras’
- GC unknown during design/CDs
- Contracts (Public - go to low bid)
Why would an Owner add a CM to the team? (3)
to oversee:
- schedule
- cost
- construction method
What does the organizational structure of Design-Build project w Bridging look like?
What are the 2 phases of a Design Build project delivery method.
-
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
When & why is the P3 project delivery method used?
USE: Very large infrastructure projects
or bundles of smaller projects of the same type
WHY: Private can administer more efficiently /quickly than public
What are the advantages of a P3 project delivery method? (5)
- uses efficiencies & expertise of private sector
- life cycle costs reduced if operated by private
- single point of responsibility
- reduced time /const. sched
- design often deciding factor in proposal selection
What are the disadvantages of a P3 project delivery method? (5)
- 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
- prof liability ins. hard to get (particularly for small firms)
Who should seriously consider using a ‘bridging’ or ‘advocate’ architect on a design-build project?
Less sophisticated Owners, who do not have in-house architectural, engineering or
project management expertise
What are the 3 possible roles for a CM and their corresponding contract forms?
-
CM as Advisor - CCDC 5a
- O contracts each of the 3 parties separately
- 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 know until end
- risk flows to owner
-
CM as Constructor
- hired prior to completion of design
- shifts all risk to GC
- typ. more expensive
What are the advantages of a design-build project delivery method? (3)
- single point of responsibility
- typically faster than traditional method
- In DB competition, GC more motivated to provide cost savings /value
What are some disadvantages of the Design-Build project delivery method?
- cost savings could be in conflict w building quality & maintenance costs
- More complex process than CM
- The owner is disconnected from the DB Architect
- More risk than CM
- Architects & engineers are disconnected from owner
- Too difficult /costly for one-off building types
*w bridging:
CM is often faster
What project delivery method often takes the name ‘Project Management’?
CM as Agent (representing Owner)
What are the pros(2) and cons(2) of PM project delivery?
+ Well informed O better able to choose based on quality vs. cost.
+ Better quality design when arch 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
What other project delivery method is a ‘Turnkey’ development most like?
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.
What types of projects are best suited for a cost plus delivery method? (3)
- Good for fast projects
- (can start b4 design complete)
- Good when high quality needed
- Good for unknowns
**CCDC 3
What risks are associated with Cost Plus project delivery? (3)
- no incentive to avoid cost overrun
- project $ unknown
- not allowed for public proj.
What are 3 common ways to calculate the GC fee for Cost Plus projects?
- agreed upon fixed sum
- % of cost of work
- % of cost of work to max upset
What does CCDC stand for?
Canadian Construction Documents Committee
What are the 7 steps of bidding & tendering?
- Decide how O will Obtain Bids
- Preparing Bid Package
- Distribution of Bid Docs
- Addenda
- Bid Period & Bid Closing
- Analysis of Bids
- Contract Award
On an open bid, the notice of tender should include what information? (9)
- name/location of proj
- name of O/A
- size/type proj.
- bid close date
- how to obtain bid docs
- security rqrmnts
- date/location of pre-bid
- construction start/end dates
- form of contract
What is the usefulness of a bond?
It guarantees that the GC will stisfactorily perform the work outlined in the contract.
What are the 3 main types of bonds?
- Bid Bond (CCDC 220)
- Performance Bond (CCDC 221)
- Labour & Materials Bond (CCDC 222)
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
When distributing bids and addenda to contractors, it is important to track what?
Who is being provided with the documents.
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.
An addendum should be issued NO LATER than this time.
4 working days prior to bid close
What is a good rule of thumb for the length of a bid period?
- large/complex project (open bid)
- small (invited)
- 4-6 weeks
- 2 weeks
When is the ideal time/day to close a bid? (3)
- not on a Mon, Fri, or following a holiday
- mid-afternoon
- best to indicate ‘before’ 2pm rather than ‘on’ or ‘at’
What is announced at the bid opening?
- Bidder’s Name
- Base Bid Amount only
- rqrd bid/security bond
If it is in the architect’s services to perform an analysis of bids, what 8 aspect of the bid should be compared?
- COMPLETENESS
- inclusion of all addenda
- BID AMOUNT
- PROPOSED CONST. START/END
- SUB-CONTRACTORS LISTED
- inc. follow up of references
- MANUFACTURERS / SUPPLIERS
- inc. follow up of references
- ALTERNATIVES
- UNIT PRICES
If the architect has prepared an analysis of the bids for the client what 3 letters/notifications should follow the analysis?
-
Letter to Client reporting on bids
- List price of each compliant bid
- Describe recommended bid:
- const. time
- bid $ + alternates
-
Letter of Acceptance (***not letter of intent = bad practice)
- to successful GC
- allows GC to start work ASAP while contract drafted
-
Notification to unsuccessful bidders
- must be done promptly so they can arrange bonds and bid on other work
