CE LAW 2ND QUIZ SUPRISE Flashcards
a common practice for procurement that involves inviting multiple vendors to bid for the same material, product, or service per the business’s requirement.
Competitive Bidding
Competitive Bidding allows:
- transparency,
- equality of opportunity and
- the ability to demonstrate
that the outcomes represent the best value.
What are the Bid Documents?
- Plans - Construction Plans
- Specifications – design and materials specifications
- BOQ ( Bill of Quantities )
- Terms of References - (TOR)
- Eligibility Requirements – (company profile, etc)
- Government Licenses – ( PCAB, Business Permits, BIR certificates, SSS certificates, DOLE certificates , etc. )
PCAB
Philippine Contractors Accreditation Board
Sequence of Bidding Process
- Invitation to Bid
- Pre-qualification of Bidders
- Pre-bid Conferences
- Submission of Bids
- Evaluation of Bids by PBAC
- Awarding of Bids ( NTA )
- Notice to Proceed (NTP)
- Start of Project
- Delivery of Project
PBAC
Project Bids and Awards Committee
CM T
Construction Mangement Team
normally published in local or national papers
Invitation to bid
submission of docs
Pre-qualification of Bidders
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
Pre-bid Conferences
( closed bid or open bid, BONDS requirement )
Submission of Bids
CQS
Construction Quantity Surveyor
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
Bid Bonds
this type of bond is normally secured before DP is release
Performance Bond
this type of bond is secured in order for the retention be released.
Warranty Bond
A pricing mechanism in construction contracts based on a series of line items identifying discrete tasks or scopes of work
UNIT PRICE CONTRACT
Greatest Risks Involved in a UNIT PRICE CONTRACT
is the inability to identify the TOTAL COSTS until after work is complete, which makes it easier for cost manipulation to occur
Under a Unit price contract
the contractor is PAID FOR THE ACTUAL QUANTITY of each line item performed as measured in the field during construction.
Unit Price Contract is a
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 .
What are the basis of a Unit Price Contract?
based on the estimates (BOQ) bill of Quantities normally provided by the ( 3rd party) independent Construction Quantity Surveryor (CQS)
Unit Price Contracts are commonly used on:
> Public Works Projects
Horizontal construction such as roads. They are best suited for construction work consisting of repetitive task that are easily measured.
Each Unit Price Includes:
all labor ,
materials ,
equipment ,
overhead and
profit attributable to that scope of work.
Cost Plus Contract
A contract such that a contractor is paid for all of its allowed expenses ,plus additional payment to allow for profit
Cost –Plus contracts are generally used if
the party drawing up the contract has budgetary restrictions or if overall scope of the work can’t be estimated properly in advance.
Advantages of Cost-Plus Contracts
- 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.
Types of Cost-Plus Contracts
- Cost Plus Fixed Fee
- Cost Plus Fixed % Fee
- Cost Plus Fixed % + Incentive
Contractor compensation is based of the completion levels on a fixed sum independent of the final project cost.
Cost Plus Fixed Fee
in this ,contractor will receive income by using a pre-decided percentage of the cost of the contract
Cost Plus Fixed % Fee
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.
Cost Plus Fixed % + Incentive
NTA
Notice of Acceptance
NTP
Notice to Proceed
