Ch. 10 - Getting to a Contract Flashcards
(28 cards)
Call for tenders
(aka invitation to tender) a request by a buyer of goods or services (owner) to a group of potential sellers of those goods or services (bidders) to submit a proposal or bid for delivering a defined set of goods or services.
Bidder
A party that submits a bid in response to a call for tenders
Design-bid-build
A process in which a project owner and its consultant conceptualize and design a project in its entirety, the owner then hires a contractor to build it (through tendering), the consultant reviews the construction, and the owner finances the project and puts it into service.
Design-build
A process in which a project owner conceptualizes a project, with or without a consultant; then hires a contractor to design it, build it, and review it; and then finances the project and puts it into service.
Scope of work
The definition of goods and services to be supplied pursuant to a contract.
Request for qualifications
A process used to choose a project participant based solely on the qualifications of the respondents, rather than on other criteria, such as price.
Request for quotation
Is generally an informal process whereby separate requests are made with no formal closing time or tender closing conditions.
Request for standing offers
A process in which the buyer prearranges prices, terms, and conditions with sellers for frequently ordered goods or services.
Request for proposals
A specification that describes in detail all of the individual components of the final product.
Proponent
A potential seller that submits a detailed proposal responding to a request for proposals.
Prequalification
A process in which potential sellers are prequalified so as to limit the ultimate call for tenders or requests for proposal to limited number of qualified sellers.
Bid
(aka a tender) an offer made in compliance with a fixed set of contract terms, usually in the context of a competitive process.
Bid shopping
The practice of using a price submitted by one party to obtain a lower price from another party in a tendering situation. NOT illegal.
Bid depository
A system used by buyers, sellers, and suppliers to receive sealed bids from trade contractors in the construction industry. Designed to prevent bid shopping.
Construction management
A process in which the owner contracts directly with all of the trades rather than hiring a general contractor. Can hire construction manager to manage trades but if problems arise, owner must get involved.
International trade agreement
An agreement between two countries that puts rules in place about the transfer of goods and services between two countries. e.g. NAFTA, WTO
Interprovincial trade agreement
An agreement between the federal government and the provinces that puts rules in place about the transfer of goods and services between the provinces. Agreement on Internal Trade (AIT)
Three Considerations for getting to Contract
Choosing project contractors, Delivering the Project, paying for the project
3Ps
Public Private Partnership. Public provides land, private builds & operates 10 yrs. e.g. sewage treatment plant
Contract Award
When bid is accepted, # of rights & obligations form. buyers & contractors should strictly adhere to the instructions to bidders to avoid liability. Buyers shouldnt decline to award the contract at all & re-tender
Mistakes
if mistake makes bid compliant, renders bid unacceptable, must be obvious. Errors in judgement arent mistakes. Buyer can accept unless obvious & material.
Bidding process
prep of docs, invitation by owner (tender), pricing by sellers, submission, evaluation, award.
Contract formation
call for tenders by owner, bid submission by seller/supplier (contract A), bid offer submitted by seller, selection of winner by owner (contract B). e.g. Oak Bay Rec Building
Fairness Monitor
person or firm that ensures the bidding process runs fairly, openly, & transparently
