CE LAW 2ND QUIZ SUPRISE

Question 1

a common practice for procurement that involves inviting multiple vendors to bid for the same material, product, or service per the business’s requirement.

Answer 1

Competitive Bidding

Question 2

Competitive Bidding allows:

Answer 2

1. transparency,
2. equality of opportunity and
3. the ability to demonstrate
   that the outcomes represent the best value.

Question 3

What are the Bid Documents?

Answer 3

1. Plans - Construction Plans
2. Specifications – design and materials specifications
3. BOQ ( Bill of Quantities )
4. Terms of References - (TOR)
5. Eligibility Requirements – (company profile, etc)
6. Government Licenses – ( PCAB, Business Permits, BIR certificates, SSS certificates, DOLE certificates , etc. )

Question 4

PCAB

Answer 4

Philippine Contractors Accreditation Board

Question 5

Sequence of Bidding Process

Answer 5

1. Invitation to Bid
2. Pre-qualification of Bidders
3. Pre-bid Conferences
4. Submission of Bids
5. Evaluation of Bids by PBAC
6. Awarding of Bids ( NTA )
7. Notice to Proceed (NTP)
8. Start of Project
9. Delivery of Project

Question 6

PBAC

Answer 6

Project Bids and Awards Committee

Question 7

CM T

Answer 7

Construction Mangement Team

Question 8

normally published in local or national papers

Answer 8

Invitation to bid

Question 9

submission of docs

Answer 9

Pre-qualification of Bidders

Question 10

meeting with prospect bidders and discuss all about the details of the project being bidded out. Q & A on the project.
Bid bulletins
Instruction to Bidders

Answer 10

Pre-bid Conferences

Question 11

( closed bid or open bid, BONDS requirement )

Answer 11

Submission of Bids

Question 12

CQS

Answer 12

Construction Quantity Surveyor

Question 13

is a legal agreement that ensures contractors fulfill their stated obligation on a project. It is a guarantee from a surety company to the project Owner that a contractor is able to comply the obligations of a contract…Normally 5% - 10% of the Contract amount

Answer 13

Bid Bonds

Question 14

this type of bond is normally secured before DP is release

Answer 14

Performance Bond

Question 15

this type of bond is secured in order for the retention be released.

Answer 15

Warranty Bond

Question 16

A pricing mechanism in construction contracts based on a series of line items identifying discrete tasks or scopes of work

Answer 16

UNIT PRICE CONTRACT

Question 17

Greatest Risks Involved in a UNIT PRICE CONTRACT

Answer 17

is the inability to identify the TOTAL COSTS until after work is complete, which makes it easier for cost manipulation to occur

Question 18

Under a Unit price contract

Answer 18

the contractor is PAID FOR THE ACTUAL QUANTITY of each line item performed as measured in the field during construction.

Question 19

Unit Price Contract is a

Answer 19

derivative measure of a Labor only Contract without GMQ. Normally Pricing of per unit contract is based on volume, surface area, no.of pieces and weight in kgs or tons installed .

Question 20

What are the basis of a Unit Price Contract?

Answer 20

based on the estimates (BOQ) bill of Quantities normally provided by the ( 3rd party) independent Construction Quantity Surveryor (CQS)

Question 21

Unit Price Contracts are commonly used on:

Answer 21

> Public Works Projects
Horizontal construction such as roads. They are best suited for construction work consisting of repetitive task that are easily measured.

Question 22

Each Unit Price Includes:

Answer 22

all labor ,
materials ,
equipment ,
overhead and
profit attributable to that scope of work.

Question 23

Cost Plus Contract

Answer 23

A contract such that a contractor is paid for all of its allowed expenses ,plus additional payment to allow for profit

Question 24

Cost –Plus contracts are generally used if

Answer 24

the party drawing up the contract has budgetary restrictions or if overall scope of the work can’t be estimated properly in advance.

Question 25

Advantages of Cost-Plus Contracts

Answer 25

• Higher quality since contractor has incentive to use the best labor and materials.
• Less chance of having the project overbid.
• Often less expensive than a fixed priced contract or lumpsum contract since contractors don’t need to charge a higher price to cover the risk of a higher material cost than expected.

Question 26

Types of Cost-Plus Contracts

Answer 26

1. Cost Plus Fixed Fee
2. Cost Plus Fixed % Fee
3. Cost Plus Fixed % + Incentive

Question 27

Contractor compensation is based of the completion levels on a fixed sum independent of the final project cost.

Answer 27

Cost Plus Fixed Fee

Question 28

in this ,contractor will receive income by using a pre-decided percentage of the cost of the contract

Answer 28

Cost Plus Fixed % Fee

Question 29

certain contracts may have an additional incentive covenant, which states that in case of early completion of the completion levels as mentioned in the agreement, the contractor is eligible to receive and incentive as mentioned in the terms of agreement.

Answer 29

Cost Plus Fixed % + Incentive

Question 30

NTA

Answer 30

Notice of Acceptance

Question 31

NTP

Answer 31

Notice to Proceed