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LARE Section 1 > Bidding and Contracts > Flashcards

Bidding and Contracts Flashcards

1
Q

DIVISION 1

A

General Requirements

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2
Q

What are the disadvantages to the design-bid-build process

A
  • accurate cost unknown until design is done
  • bids that exceed the owners budget cannot be readily accommodated without jeopardizing the project
  • The various parties tend to be adversarial
  • Errors or omissions in design may lead to costly change orders
  • A negotiated contract eliminates many of these concerns (and some of the advantages as well)
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3
Q

What is the purpose of a short list in the bid process

A

To ensure the contractors bidding have the qualifications needed to complete the work

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4
Q

Value Engineering

A

essentially relates to reviewing the contract documents with the owners best interest in mind

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5
Q

What phases can Value Engineering be applied

A

design and construction phases

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6
Q

Constructability Review

A

an assessment of the contract documents prior to the bidding phase, to identify problem areas and suggest improvements

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7
Q

Instructions to Bidders

A

rules by which the project will be bid

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8
Q

Addenda

A

clarification and changes to the bid documents after the start of the bid notice

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9
Q

Alternates

A

alterations to the base bid, in general, bed to avoid

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10
Q

Bid form

A

included in the bid documents, allows for easy comparison of bids

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11
Q

Give an example of an irregular or nonconforming bid

A
  • Missing signature
  • Missing a bond or a bond from an approved surety
  • Late submission
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12
Q

Under what conditions might the low bidder be able to withdraw the bid, even though the bids have already been opened?

A

Request has been made to the owner, in writing, before the time set for opening the bids

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13
Q

In public projects how is the winning bidder chosen

A

lowest responsible bidder submitting a regular bid

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14
Q

What unique risks are taken by a contractor who is not licensed?

A

Cannot use the court system as a means of redress for any construction-related disputes

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15
Q

Why might a mistake in a bid be seen as grounds for nullifying the bid?

A

There is no meeting of the minds

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16
Q

What is reverse auction and what are the issues potentially

A

all the contractors can see other bids submitted online but can be seen as unethical/bid shopping

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17
Q

Who owns the design in public projects verse public projects

A

In public projects, the owner, and in private project, its established in the contract

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18
Q

General drawing categories on building projects (6)

A

general information and site work, structural, architectural, plumbing, heating/AC/Ventilation, and Electrical

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19
Q

The project manual consists of which sections

A

bidding documents, general conditions, supplementary provisions, and the technical specifications

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20
Q

What is the underlying purpose of the general conditions, or boilerplate, of a construction contract

A

Outline the rules under which the project will be built

Establish the rights, authority and obligations of the contracting parties

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21
Q

What is the general purpose of supplementary provisions or special conditions in a construction contract

A

Specific to the job being constructed

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22
Q

What is the significance or value of using CSI format in preparing the technical specifications for a building project

A
  • Widely used, helps the user become quickly oriented with the project
  • Divisions listed on page 161 of Hinze
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23
Q

In the case of a conflict between plans and specifications which will govern

A

the specifications

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24
Q

If an item is not present in either the specs or the drawings but is in the other, how does the contractor bid the project

A

The contractor will still include that in their bidding process. They can use a request for information (RFI) submitted to the architect to clarify.

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25
Q

A spec must satisfy the what basic criteria

A
  • Technical accuracy and adequacy
  • Definite and clear stipulations
  • Fair and equitable requirements
  • A format that is easy to use during bidding and construction
  • Legal enforceability
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26
Q

Types of specifications

A
  • Design specs
  • Performance specs
  • Performance and Designs Specs
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27
Q

Give an example of a design specifications

A
  • Also called material and workmanship specifications, method and materials specifications, and prescriptive specifications
  • Stipulates HOW the contractor will complete the work and implies that this will produce the desired result
  • Contractor is not liable if the desired results are not accomplished if they adhere to the spec
  • The owner is responsible for the outcome of the design specifications
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28
Q

Give an example of a performance specification

A
  • The results or the performance of the finished product, rather than the specific methods and materials used to construct the product are specified
  • In these specs, the responsibility of the design rests with the contractor
  • Preferred by owners as it incorporates the knowledge and expertise of the contractor
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29
Q

Performance and Design Spec

A

This type of spec is one in which the contractor is instructed how to do a task and then told to warrant that the results will be satisfactory.

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30
Q

Differences between closed and open specifications

A

Nonrestrictive specifications (commonly referred to as an “open” specification) are written in such a manner as to not limit competition, directly or indirectly, to any one specific concern. An “open” specification allows products of any manufacturer to be used if the product meets the specifiedrequirements. In contrast, a “closed” specification restricts a product to a single manufacturer. A “closed” specification is generally prohibited.

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31
Q

Other terms for open specifications

A

non-restrictive, or equal, or approved equal, all-inclusive, reference, standard specifications

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32
Q

Other terms for closed specifications

A

proprietary spec

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33
Q

Is a multi-proprietary specification open or closed?

A

May be both

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34
Q

How can a proprietary specification be made into an open specification

A

Including “or equal” language after the specified model

35
Q

DIVISION 2

A

Sitework

36
Q

DIVISION 3

A

Concrete

37
Q

DIVISION 4

A

Masonry

38
Q

DIVISION 5

A

Metals

39
Q

DIVISION 6

A

Wood and Plastics

40
Q

DIVISION 7

A

Thermal and moisture protection

41
Q

DIVISION 8

A

Doors and Windows

42
Q

DIVISION 9

A

Finishes

43
Q

DIVISION 10

A

Specialties

44
Q

DIVISION 11

A

Equipment

45
Q

DIVISION 12

A

Furnishings

46
Q

DIVISION 13

A

Special Construction

47
Q

DIVISION 14

A

Conveying Systems

48
Q

DIVISION 15

A

Mechanical

49
Q

DIVISION 16

A

Electrical

50
Q

What information should be included in an advertisement that does not relate directly to the nature or scope of a project to be constructed

A

Type of contract, bonding requirements, terms of payments, bid details (time, manner, place), location to obtain bid docs), deposit required on bid documents, owners right to reject any and all bids, requirements regarding wage rates

51
Q

Constructibility Review

A

an assessment of the contract documents prior to the bidding phase, to identify problem areas and suggest improvements. Conducted by the design team during the contract document creation

52
Q

Alternates

A

alterations to the base bid, in general, bid to avoid

53
Q

Bid form

A

included in the bid documents, allows for easy comparison of bid

54
Q

What unique risks are taken by a contractor who is not licensed?

A

Cannot use the court system as a means of redress for any construction-related disputes

55
Q

Who owns the design?

A

In public projects, the owner. In private projects, it’s established in the contract

56
Q

What is the underlying purpose of the general conditions, or boilerplate, of a construction contract

A

Outline the rules under which the project will be built

Establish the rights, authority and obligations of the contracting parties

57
Q

A spec must satisfy the following basic criteria:

A
  • Technical accuracy and adequacy
  • Definite and clear stipulations
  • Fair and equitable requirements
  • A format that is easy to use during bidding and construction
  • Legal enforceability
58
Q

design specifications

A
  • Also called material and workmanship specifications, method and materials specifications, and prescriptive specifications
  • Stipulates HOW the contractor will complete the work and implies that this will produce the desired result
  • Contractor is not liable if the desired results are not accomplished if they adhere to the spec
  • The owner is responsible for the outcome of the design specifications
59
Q

performance specification

A

-The results or the performance of the finished product, rather than the specific methods and materials used to construct the product are specified
- In these specs, the responsibility of the design rests with the contractor
Preferred by owners as it incorporates the knowledge and expertise of the contractor

60
Q

Performance and Design Spec

A

This type of spec is one in which the contractor is instructed how to do a task and then told to warrant that the results will be satisfactory.

61
Q

closed specification

A

requires a specific item or system. IN public works projects, more than 3 models must be names to avoid being considered closed.

62
Q

Types of closed Specs

A

Proprietary spec:
Specifically states what is to be provided w/o any allowance for alternatives

Multi-proprietary spec:

  • May be open or closed
  • Design spec
  • Models of more than one manufacturer are specified
63
Q

Types of Open Specs

A 
Or Equal
Or Approved Equal
All-Inclusive Specs 
Reference Specifications
Standard Specs
64
Q

Or Equal specs

A
  • Modification of proprietary specs in that it is followed by ‘or equal’
  • Should be avoided by spec writers as it is difficult to argue that an alternative is not equal
65
Q

Or Approved Equal specs

A

Architect is not liable if a substitute is accepted and later proves to be inadequate

66
Q

All-inclusive Specs

A

Languages such as “as directed by the engineer”, “to the approval of the architect” makes it hard to bid on

67
Q

Reference specifications

A

Establish the performance of a product as measured by a standard or accepted test procedure

68
Q

Standard specifications

A

Set of technical specs developed by an owner that can be used on similar type projects.

69
Q

How can a proprietary specification be made into an open specification

A

Including “or equal” language after the specified model

70
Q

Unit Price Contract

A

Unit price contracts are appropriate for when the project is well defined but the actual quantities are impossible to estimate with accuracy until after construction has started

71
Q

Balanced bid

A

a bid which the anticipated costs for the various items are accurately reflected in the unit prices that are submitted

72
Q

How is a unit price contract paid out

A

Payment is made by determining quantities complete, verified by representative of the owner

73
Q

What are the disadvantages to the unit price contract

A

Owner won’t be certain of actual cost until the project is complete. The extent of this shortcoming is directly related to the accuracy of the estimate

74
Q

Cost-Plus Contract

A

A contractor is reimbursed for most of the direct expenditures associated with a particular project plus an allowance for overhead and profit. Allowance can be fixed fee or percentage of construction

75
Q

When is a cost-plus contract appropriate

A

This contract is appropriate when the actual costs of the project are difficult to measure with accuracy. This could be due to incomplete plans, the project cannot be accurately portrayed or if a short time period. Can be useful is a lot of changes are anticipated throughout the project

76
Q

Lump Sum Contracts

A

Most common type used in the construction industry, value of individual items is ideally set out before the start of construction. Pay out is typically monthly

77
Q

How are changes addressed in lump sum, unit price, and cost-plus contracts

A

lump sum and unit price are negotiated separately and cost plus is automatically addressed as part of the contract.

78
Q

Cardinal change

A

changes not within the general scope

79
Q

Difference between extra work and additional work?

A

Extra work consists of work outside of the contract

Additional work consists of work that must be undertaken to meet the contract requirements, w/o this work, the work requested in the original contract will not be able to be completed (to be considered, could not have been anticipated)

80
Q

What basic exceptions in no damage for delay clauses permit the contractor to be awarded damages?

A
  • If a delay were not contemplated at the time of contract negotiation, commonly denial of access to site
  • Acts of interference, acts or omissions by the owner which actively interfere with work progress (ex. Delayed completed plans)
  • Unreasonably long delays
  • Fraud or bad faith
81
Q

What is the purpose of retain age in payments to the contractor

A

to provide a cushion for incorrect payments

82
Q

Latent Defects verses Patent Defects

A

Latent: cannot be seen typically with destructive investigation (are the responsibility of the contractor even after the owner has assumed occupancy)

Patent: quickly/easily observed

83
Q

How are the principles of warranties applied to the work of design professionals?

A

Warranties for professionals is meant to say that the work will be consistent w/ the standards of the profession

84
Q

Does the acceptance of a shop drawing remove the liability from the contractor?

A

no

LARE Section 1 (7 decks)

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