9-Bidding & Contract Negotiations Flashcards
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
True or False? A letter of intent is legally binding?
False. A letter of Acceptance is legally Bidding. A letter of Intent can be misleading and have no real intent, they should be avoided in favor of Letter of Acceptance
Which one of the following is not a disadvantage of Design-Bid-Build?
a) Lowest bidder is not always the most qualifies
b) Client may expect the price to be the tendered one, without including contingencies
c) Change orders and delays can occur from too-low bidders
d) Contractor is unknown at the design phase
e) Limited info about construction costs and constructability because of separation between design/architect and construction/constructor
c) Change orders and delays can occur from too-low bidders
It is a disadvantage for a project delivery with CM.
True or false? As the project progress, a CM automatically becomes a GC?
False. GC can be different firm that CM
What contract are use in a design-bid-build project delivery?
RAIC Doc 6
CCDC 2
CCDC3 - Cost Plus Contract if required
CCDC 4 - Unit Price if required
What contract are used for a project delivery using a Construction Manager?
CCDC 5A - CM contract for services
CCDC 5B - CM contract for services and work
What are the advantages of Construction Manager project delivery?
A) Contractor expertise, construction costs monitoring, 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) Contractor expertise, construction costs monitoring, sequential tendering
What are the disadvantages of Construction Manager project delivery?
A) Add cost/time of a consultant and their selection, Owner (as constructor) has the responsibility for construction safety unless transferred to the CM, Contractor is unknown at the design phase
B) Change orders and delays can occur from too-low bidders, Contractor is unknown at the design phase, Construction can start before knowing the final cost
C) Less control over final cost in unstable construction market, Change orders and delays can occur from too-low bidders, Owner (as constructor) has the responsibility for construction safety unless transferred to the CM
D) Less control over final cost in unstable construction market, Change orders and delays can occur from too-low bidders, Contractor is unknown at the design phase
C) Less control over final cost in unstable construction market, Change orders and delays can occur from too-low bidders, Owner (as constructor) has the responsibility for construction safety unless transferred to the CM
Which is not a disadvantage of a Design-Bid-Built project delivery?
A) Potential lack of comm. Between arch and owner/users
B) Client may expect the price to be the tendered one, without including contingencies
C) Contractor is unknown at the design phase
D) Lowest bidder is not always the most qualifies
E) Limited info about construction costs and constructability because of separation between design/architect and construction/constructor
A) Potential lack of comm. Between arch and owner/users
What are the contract for a Design-Build project delivery?
CCDC 14 - Design-Build Stipulated Price Contract
CCDC 15 - Design-Builder/Consultant Contract (subcontract)
True or False? In a Design-Builder project delivery, the architect is not the main designer of the project.
True.
What is the contract for Integrated Project Delivery?
CCDC 30
Which is not a disadvantage of Integrated Project Delivery?
A) More commitment and efforts in meetings, collaborative work and PM
B) Owner must be fully engage
C) Professional liability insurers may place restrictions on coverage.
D) Negotiation and balancing of interests become important to success
E) Non-collaborative work may result in additional work
C) Professional liability insurers may place restrictions on coverage.
What type of project delivery include a real estate function?
What type of real estate functions are possible? (4)
What type of proposal are usually used for this type of project delivery?
Turney development.
Real estate function may include:
-Acquisition
-Entitlements
-Construction
-Long-term financing
Design-Builder or developer proposal methods
True or false? The architect is responsible to determined to % of work completed.
True.
What is labour and material bond?
A labour and material payment bond guarantees that claimants (subcontractors, sub trades and suppliers who have direct contracts with the contractor) will be paid for labour and materials provided to the contractor for use on the project identified in the bond.
What is a performance bond?
Indemnify the client up to the amount off the bond in case of bankruptcy of insolvency. Cover the cost of completing the contract and other costs for which surety is liable. 50 to 100% of the cost of the project.
What is a bid bond?
if bid is accepted, the contractor will enter into contract with the client. If they don’t, they pay the difference between their cost and the new contractor up to the amount of the bid bond. For smaller project, it is 5-50% of estimated cost of construction, for very large project, 2.5% is appropriate
What notification is the client supposed to send to bidder who failed to win the bid?
Letter to Unsuccessful Bidders
What is a bid depository?
Facility operated by construction associations to receive and register bid from subcontractors and suppliers then transit these bids to general contractors. Rules to be confirmed with the local bid depository.
