9.3

Question 1

Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the consultant?

Answer 1

• Assist and advise client on obtaining bids
• Awarding and preparing contracts (RAIC Doc 6)
• Distribution of the bid documents
• Analyze the bids and give recommendations
• Prepare letter of acceptance/intent

Question 2

Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the owner?

Answer 2

• Distribute bid documents
• Analyze bids
• Selection of successful bidders
• Issue the letter of acceptance/intent

Question 3

Roles and Responsibilities during Bidding:
What are the roles and responsibilities of the contractor?

Answer 3

• Bid deposit/bond
• RFI
• Submit bid (Tender)
• Execute contract

Question 4

Roles and Responsibilities during Bidding:
Describe the role of local construction associations and bid depositories.

Answer 4

A bid depository is a facility operated by the local construction association to collect and register bids from subcontractors and suppliers, and then transmit these subtrade bids to general contractors.

• Usually used for electronic tendering, or when there are a large number of tender documents for complex projects.

Question 5

Roles and Responsibilities during Bidding:
What is the purpose of the bid depositories rules?

Answer 5

• Minimize confusion
• Limit bid shopping
• make all required information available to all members of each bid depository and to all general contractor bidders registered with that bid depository.

Question 6

Methods of Awarding a Contract:
What are the 3 common methods for selecting a general contractor?

Answer 6

• Open competitive bids (public tender)
• Close competitive bids (invited tender)
• Direct selection

Question 7

Methods of Awarding a Contract:
Explain Open Competitive Bids

Answer 7

• Also called public tender call.
• Bidders are not usually screened or pre-qualified and, and the capability of the contractor is unknown.
• Contractor may be selected on price alone.
• Usually done for public projects.

Question 8

Methods of Awarding a Contract:
Explain Invited Competitive Bids

Answer 8

• Client may select contractors that the architect or the client have had a satisfactory experience with.

Question 9

Methods of Awarding a Contract:
Explain Direct Selection

Answer 9

When the client negotiates a contract with a single contract who they have developed a relationship with. They are based on mutual trust and full disclosure of all estimates.

Question 10

The Bidding Process:
Outline the steps of conducting the tender

Answer 10

• Notify prospective bidders of the opportunity to bid through public advertisements or direct contact. Pre-qualification
• Issue the tender documents to the bidders.
• Conduct a bidders’ conference in which all bidders have the opportunity to receive information, ask questions and, in the case of existing facilities, tour a site and building.
• Respond to inquiries. (Addenda)
• Receive and evaluate proposals. (Analyze)
• Negotiate outstanding conditions to the contract. (Letter of Intent)
• Award the construction contract.
• Post bid (Bonds/Sureties).
• Execute the construction contract.

Question 11

The Bidding Process:
What does a pre-qualification general consist of?

Answer 11

• Company information, including ownership, when established, construction capacity given in annual gross revenues.
• Resumes for people proposed to be assigned to the project.
• Demonstration of capability through the successful completion of similar projects.
• Safety records.
• Methodology used in managing projects,

Question 12

The Bidding Process:
What is a bid bond, and what is the typical bond amount?

Answer 12

A bid bond is a guarantee from a surety company to the project owner that a contractor is able to fulfill the obligations of the contract and provide contract bonds before work begins. The typical bond amount is 5-10% of the construction cost.

Question 13

The Bidding Process:
What happens if the owner accepts a bid but the contractor fails to enter the contract?

Answer 13

If the contractor fails to enter into a
contract, the surety will guarantee - up to the amount of the bid bond - to pay the difference in money between the amount of the contractor’s bid and the amount for which the owner legally contracts with another contractor for the project.

Question 14

Required Documentation:
What is required in the bid package?

Answer 14

• Bidding requirements (Bid Form, Bid Bond Requirements)
• Contract requirements (Insurance, bonding requirements and allowances)
• Specs
• Site Data (Surveys, Geotech, environmental reports)
• Drawings
• Schedule Restrictions
• Addenda