B3 - Bidding Process - LT #2 Flashcards
What is the difference between tendering and a request for proposals?
Tendering is based on price alone.
Request is used when additional criteria are used to award a contract.
Why is a bid form used?
To make bids easier to compare.
What is the difference between public and invitational tendering?
The public is advertised and all qualified contractors can bid. Invitational is where the owner chooses the contractor that can bid.
What does the term stipulated sum mean?
Fixed Price
The Carpenter on the Job Site is being paid $26/hr, while the customer is charged $48 per hour. Why is there this much difference?
Worksafe BC, CPP, EI, Insurance, Vehicle, accounting, and other overhead costs.
Why is the scope of work important?
Covers what the contractor will and won’t do. Defines job and obligation.
For renovation bids, what are some hidden conditions that contractors should address in their bids?
Asbestos, rot, rodents, bats, etc.
Why should the contractor follow up after giving a bid and not hearing back from the customer?
Help customers who are having a hard time deciding, find out why they went with another firm.
What is a bid?
Valid bidding contract that confers rights and responsibilities on both the owner and bidder.
Obligation of both parties is to enter into a construction contract according to the bid.
What happens when the lowest bid exceeds budget?
The owner may negotiate with the lowest bidder to downsize or eliminate items within the budget.
An estimate refers to what?
A guesstimate, not a firm price.
The biggest concern in bidding renovation projects is:
Hidden conditions, always make a clause protecting the contractor if asbestos, or other hazardous material or rot is found.
