Bidding + Negotiation Flashcards
Addendum
modification to the procurement documents issued for bid/negotiation.
can be issued any time before owner-contractor agreement is executed
Allowance
amount of money or quantity of materials identified by bidders for work that is not completely defined in the procurement docs
Bid alternate
portion of the work defined in the procurement docs for which separate pricing is to be identified
base bid
construction cost proposed by a contractor for full scope of work, without any bid alternate pricign
payment bond
aka labor and materials payment bond.
an amount of money guaranteeing that the contractor will pay subcontractors, vendors, supplies for their work
protects owners against mechanics liens and construction delays
performance bond
guarantee by an entity which ensures that should the contractor default, there are sufficient funds to complete the project
privately funded project
one for which none of the funding is provided by a public agency
project delivery method
manner in which the owner contracts for design and construction services
publicly funded project
portion of the funding provided by a public entity, ie fed government
qualification based selection (QBS)
owner selects a contractor solely on the basis of the contractors qualifications
responsible bidder
one who can demonstrate financial capacity to perform the contracted work
responsive bid
one in which all bidding requirements, including all elements in bid form, have been completed
value based selection (VBS)
owner selects a contractor based the weighted values of multiple criteria, including construction cost or fee and proposed schedule, as well as qualifications based criteria such as past experience or similar projects
Project Manual
contains procurement requirements and contracts
Instructions to bidders
A701, tells bidders what constitutes a responsive bid
includes: bid due date, date and location of pre-bid conference, last date bidders can ask questions, process for submitting questions
bid bond
A310
guarantees that if low bidder withdraws after selection but before execution of contract, owner will be reimbursed by low bidder for diff between low bid and next lowest bid
bid form
format for the bidders to present their cost, schedule, unit prices, etc
non responsive bid
bid with incomplete bid form
owner contractor agreement
A101
General Conditions
A201
set forth rights, responsibilities, relationships of owner/contractor/arch
define procedural requirements that will apply throughout construction period
include: provisions for payment, modifications to contract, insurance, correction of defective work
Supplementary conditions
A503 provides guidelines only
Provide project specific modifications to general conditions
specifications
identify in narrative form the qualitative, performance, installation requirements for products, materials, and workmanship. and admin procedures
contract drawings
graphic illustration of project
show size, form, representation of materials and systems
bound separately from project manual
addenda
modifications to contract drawings during procurement period
what’s NOT included in contract documents?
instructions to bidders (A710), bid bond, bid form. these are procurement documents
Procurement Documents include:
project manual
contract drawings
any issued addenda
Bidding Docs
bound into project manual (NOT part of contract docs)
Bidding contingency
added to base bid by contractor to account for un certainty of marketplace/cost of materials, etc.
bid bond
contractor obtains a bid bond from an insurance company
asserts that the company will pay the diff between contractors price and next lowest bidder if contractor does not take job
bid security
certified check submitted with the bid by the contractor, forfeited if the contractor fails to enter into an agreement with the owner
bid tampering
can be caused by:
- failure of owner to read bids aloud
- allowance of late bids by owner
- collusion of bidders otherwise expected to compete to influence who is awarded the project
How many bidders should you invite to bid on a project?
5-6
Spearin Gap
DBB
- liability is carried by owner
- gap is the difference between defect free documents and the standard of care
- there will be unavoidable issues that arise in construction that are not the architect’s fault of the contractors fault, thereby falling upon the owner
