Bidding & Negotiation Terms (10.8 AHPP) Flashcards
Addendum
change to procurement documents, submitted during bid phase of project. addenda can be issued any time BEFORE the owner-contractor agreement is executed and BEFORE the bids are opened.
Allowance
allocation of money for a bid item when the exact quantity or quality is not known. allowance is normally stated by the owner to ensure money is set aside for that item and does not slow down bidding of the Construction Documents.
Example - door hardware allowance, when the hardware itself hasn’t been detailed or specified.
Bid Alternate
A portion of the work for which separate pricing is to be identified in bidders’ proposals.
Base Bid
Contractor’s bid pricing without any of the bid alternates.
Payment Bond
(a.k.a. labor and materials payment bond) amount of money guaranteeing that the contractor will pay subcontractors, vendors and suppliers for their work. this protects owners against potential mechanic’s liens and construction delays
Performance Bond
A guarantee by an entity (usually surety agency) which ensures that, should the contractor default during construction, there are sufficient funds to complete the project.
Privately funded project
none of the funding for the project is public
Project Delivery Method
the way that the owner contracts for design and construction services.
Publicly funded project
portion of the funding is provided by a public entity, such as federal, state, or local government.
Qualifications-Based Selection (QBS)
Owner selects contractor solely on basis of contractor’s qualifications
Responsible Bidder
A bidder that demonstrates financial capacity to perform contracted work
Responsive Bid
A bid that fulfills all bidding requirements.
Value-Based Selection
Owner selects contractor base on weighted values of multiple criterial, such as construction cost/fee, proposed schedule, past experience, etc.
