ch 21 construction documents Flashcards

1
Q

When does the contract administation phase begin?

A

After the interior designer has completed a design and produced the necessary construction drawings, specifications, and FFE documents.

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2
Q

What does the contract administration phase include?

A

Establishing a contract between the owner and contractor (and others as required), managing the project in the designer’s office, and providing the necessary administrative services that are the RESPONSIBILITY OF THE INTERIOR DESIGNER.

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3
Q

What is the FIRST STEP in the contract administration phase?

A

Finding a contractor and establishing an agreement between the owner and the contractor.

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4
Q

What are the two ways in which a contract between the owner and contractor is established?

A

Negotiated Contract or Bid Contract

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5
Q

Negotiated Contract

A

Contract between contractor and owner in which the owner (with the possible assistance of the designer) selects a contractor to do the work. The contractor and owner then negotiate a price and other terms of their agreement. The contractor may be selected based on a previous working relationship, or on the recommendations of others, or both.

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6
Q

Bid Contract (Tendered Contract in Canada)

A

Contract between the owner and contractor in which the drawings and specifications are completed by the interior designer (and other consultants as necessary) and then sent to several contractors who bid on the work defined by the contract documents. The owner can select then select the contractor based on cost as well as experience, schedule, and other criteria.

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7
Q

What type of bidding generally results in the lowest price?

A

Competitive

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8
Q

AIA A771

A

Instructions to Interior Bidders - Used by interior designers and architects and describes the typical procedures and documents for bidding.

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9
Q

Bidding may be open to . . .

A

Any contractor or restricted to a list of prequalified bidders.

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10
Q

What is the purpose of prequalification?

A

To select only those contractors who meet certain standards of reliabiity, experience, financial stability, and performance.

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11
Q

What is prequalification based on?

A

Information submitted by contractors concerning their financial qualifications, personnel, experience, references, size, bonding capability, and any special qualities that make them particularly suited for the project under consideration. FOR PUBLIC WORK: When prequalification is allowed, it is usually based on financial assets and the size of the firm.

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12
Q

What are the TWO ways to notify prospective bidders of a project?

A

(1) Advertising in a newpaper or trade journal (2) Invitation to bid.

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13
Q

What information is published with an Advertised For Bids?

A

(1) Fact that call for bid is being made (2) Project name and location (3) Name and address of owner and interior designer (4) Brief description of the project, including building type and size, principal construction materials and systems, and other pertinent information (5) Date, time, and location the bids are due (6) How and where bidding documents can be obtained, and deposit required, if any (7) The locations where bid documents can be viewed. (8) The type and amount of bid bonds required. (9) The procedures for submitting bids. (10) Whether or not the bids will be open publicly (11) Other info as required, such as owner’s rights to waive irregularities of the bidding process or to accept bids other than the lowest.

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14
Q

Invitation to Bid

A

Sent to prequalified bidders and contains the same information as bid advertisements.

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15
Q

What documents do each bidder receive from the interior designer’s office?

A

Prints of drawings, specifications, bidding documents, bid forms, and other required items. Each bidder generally needs to put a deposit on each set of documents taken.

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16
Q

When are substitutions commonly requested by the contractor?

A

When there are proprietary specifications or a very limited list of acceptable manufacturers.

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17
Q

Where should the conditions under whcih substitutions will be considered and the procedures for reviewing submissions be clearly defined?

A

In the Instructions to Bidders

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18
Q

How long does a bidder typically have to submit requests for a substitution approval?

A

At least 10 days before the bid opening.

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19
Q

What must a request for a substitution include?

A

The name of the material or equipment for which the substitution is being submitted along with complete backup information about the proposed substitution. The BURDEN OF PROOF of the substitution’s merit RESTS WITH THE BIDDER. The interior designer then reviews the submission and may either reject or approve it.

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20
Q

What is done if the designer approves a substitution request?

A

The interior designer issues an ADDENDUM stating this fact and sends it to all the bidders.

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21
Q

Addendum

A

A written or graphic document issued by the interior designer BEFORE the execution of the contract that modified or interprets the bidding documents by additions, deletions, clarifications, or corrections. Addenda are issued during the bidding process BEFORE the bids are submitted. When an addendum is issued, it is sent to all bidders no later than four days before receipt of bids to give all the bidders ample opportunity to study the document and modify their proposals accordingly. The instructions to bidders states that addenda must be transmitted to all bidders and made available for inspection wherever bidding documents are on file for that purpose.

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22
Q

Prebid Conference

A

A meeting with the interior designer, owner, architect, engineers, and bidders in which the bidders can ask questions and the interior designer and owner can emphasize particularly important conditions of the project. The interior should have someone take complete notes during these meetings concerning items discussed. A copy of the notes should be sent to all bidders, whether or not they were in attendance.

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23
Q

What happens if a bid is received AFTER the opening time?

A

They should not be accepted unless none of the bids has been opened and there are no objections from those bidders present.

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24
Q

Most public bid opening are conducted by . . .

A

the Interior Designer, with the owner and bidders present. Bids are read aloud and the presence or absence of any required supporting documentation is noted.

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25
Q

Bid Log

A

The interior designer usually prepares a bid log to note the base bid amount, amounts of alternates, whether receipt of any addenda was acknowledged, and other pertinent information. The bid log should be made available to the bidders in either open or private bidding.

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26
Q

What should NOT be announced at the bid opening?

A

There should be NO announcement of the apparent low bid at the bid opening.

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27
Q

What should be done regarding a bid decision?

A

The bids shouls be evaluated within 10 days and the decision should be sent to all bidders.

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28
Q

What happens if after all the bids have been opened and a bidder discovers and can support that a clerical or mathematic error was made?

A

The bidder is usually allowed to withdraw the bid. It if is the lowest bid, the next lowest bid is accepted.

29
Q

What does the bid evaluation process include?

A

Looking for the lowest proposed contract sum as well as reviewing prices for alternates, substitutions, lists of proposed subcontractors, qualification statements, and other documentation required by the instructions to bidders. THE OWNER HAS THE RIGHT TO REJECT ANY OR ALL BIDS, TO REJECT BIDS NOT ACCOMPANIED BY THE REQUIRED BID BOND OR OTHER DOCUMENTATION, OR TO REJECT A BID THAT IS IN ANY WAY INCOMPLETE OR IRREGULAR. The interior designer may assist the owner in evaluating the bids.

30
Q

If all bids exceed the project budget and the owner-designer agreement fixes a limit on construction costs, the owner has what four options?

A

(1) Rebid, or Renegotiate (2) Authorize an Increase in the Construction Cost and Proceed w/ Project (3) Work with the Interior Designer in revising the Scope of the Project to Reduce Costs (4) Abandon the Project

31
Q

What results does rebidding typically yield?

A

Rebidding seldom results in any significaion reduction in cost unless the bidding marketplace is changing rapidly.

32
Q

What is one of the advantages of including alternates in the bid?

A

Flexible method of deleting or substituting materials or construction elements to reduce the project cost if the bid is too high.

33
Q

If a project is revised because bids come in too high, who pays the design fees?

A

The owner is responsible unless there are contract provisions specifying responsibility for changing the drawing or specifications if the project comes in over budget.

34
Q

Bidding Documents

A

Usually prepared by the Interior Designer using standard forms provided by the owner. The bidding documents are usually bound into the project manual, but these forms are NOT a legal part of the contract document. The usually include: (1) Advertisement or Invitation to Bid (2) Instructions to Bidders (3) Bid Forms (4) Bid Security Information (5) Requirements for performance bond, if required. (6) Requirements for a labor and material payment bond, if required. —- Bidding documents also state what the contractor and subcontractors should do if the discover an error or inconsistency. In such a case, bidders should make a written request to the interior designer for clarification AT LEAST SEVEN DAYS before bid opening. The interior designer then issues an addendum to all bidders, answering the questions.

35
Q

Are bidding documents a legal part of the contract documents?

A

NO!

36
Q

What does the bidding package include?

A

Bidding documents, drawings, specifications, general and supplementary conditions of the contract, addenda issued before the receipt of bids, and a form of agreement between the owner and contractor.

37
Q

What does the instructions to bidders outline?

A

The procedures and requirements that the bidders must follow in submitting the bids, how the bids will be considered, submittals requried of the successful bids, and how the bids should be physically submitted.

38
Q

How are bids normally submitted?

A

In sealed envelopes with the name of the party receiving the bid on the outside along with the project name and the name of the company submitting it.

39
Q

What form is used for instructions to bidders?

A

The AIA document A771, Instructions to Interior Bidders, is often used.

40
Q

Instructions to bidders normally include:

A

(1) Consideration of Bids (2) Bidders’ Representation (3) Bidding Documents (4) Substitutions (5) Bonds (6) Interpretations or correction of bidding documents (7) Addenda (8) Modifications or Withdrawal of Bid (9) Post-Bid Information

41
Q

Consideration of Bids

A

The procedure for opening bids and reviewing them is stated, including under what conditions bids may be rejected, how they will be evaluated, and conditions for award of the contract. Bids may be opened publicly or privately, although government projects require a public opening. THE OWNER HAS THE RIGHT TO REJECT ANY OR ALL BIDS. The owner also has the right to accept alternates in any order or combination and to determine the low bidder on the basis of the sum of the base bid and alternates accepted.

42
Q

Bidders’ Representation

A

In making a bid, the bidder represents that he has read and understood the documents, reviewed the plans and specifications, and visited the site to become familiar with the conditions under which the work will take place, and that the bid is based on the materials, equipment, and systems required by the bidding documents, withough exception.

43
Q

Bidding Documents are typically NOT issued directly to . . .

A

Sub-Bidders, unless specifically stated in the advertisement or invitation to bid.

44
Q

Substitutions

A

If the bidder wants to propose substitutions, they must meet the standards of work established by the materials and products originally specified. A bidder is required to submit a request for approval at least 10 days prior to the bid opening date. The request must include the name of the material or equipment for which the substitution is being submitted, along with complete backup information about the proposed substitution. The BURDEN OF PROOF of the merit of the substitution rests with the bidder. The interior designer then reviews the submission and may either reject it or approve it. If the submission is approved, the interior designer issues an addendum stating this fact and sends it to all the bidders. No substitutions should be considered after the contract award unless there is a valid reason.

45
Q

Bonds

A

The required bonds and the time during which they must be delivered are outlined. Normally the costs of the bonds are included in the bid amount unless they are specifically required to be furnished after the receipt of bids and before execution of the contract.

46
Q

Interpretation or Correction of Bidding Documents

A

This article requires the contractor to carefully study the documents, examine the site and local conditions, and report to the interior designer any errors, inconsistencies, or ambiguities discovered. If the bidders or sub-bidders need clarification or interpretation of the bidding documents, they must make a written request that must reach the interior designer AT LEAST SEVEN DAYS PRIOR TO THE BID DATE. The designer then must issue any interpretations or corrections by addendum, which is sent to all bidders. BIDDERS MUST ACKNOWLEDGE receipt of all addenda on the bid form.

47
Q

Modification or Withdrawal of Bid

A

BIDS MAY NOT BE MODIFIED AFTER THE DESIGNATED BID TIME AND DATE. However, prior to that time, a bid may be modified or withdrawn by making notice in writing over the signature of the bidder. The person receiving bids must date- and time-stamp the requests. Withdrawn bids can be resubmitted if they are in full conformance with the instructions to bidders.

48
Q

Post-Bid Information

A

The owner wants the contractor to submit to the interior designer a contractor’s qualification statement. The contractor must also furnish to the owner: (1) A designation of the work to be performed with the contractor’s own forces. (2) The names and manufacturers and suppliers of the principal products proposed for use on the project. (3) The names of persons or companies proposed to perform major portions of the work. - If the successful bidder requests it, the owner must furnish to the bidder reasonable evidence that the financial arrangements have been made to fulfill the owner’s obligations. This must be done NO LATER THAN SEVEN DAYS prior to the expiration of the time for withdrawal of bids.

49
Q

What should the bid form contain space for?

A

Amount of the base bid, the price for the alternates, unit prices, and the number of calendar work days in which the bidder proposed to complete the work. Space should be provided for the bidder to acknowledge receipt of any addenda. The bid form MUST BE SIGNED BY SOMEONE LEGALLY EMPOWERED to bid the contractor to the owner in a contract.

50
Q

Bid Security

A

Used to ensure that the successful bidder will enter into a contract with the enter. The owner may not require it on small interior design contracts, and it is sometimes waived on larger projects. The final decision concerning the requirements for bid security is THE OWNER’S. The form of the bid security may be a certified check, cashier’s check, or bid bond. If the successful bidder DOES NOT enter into an agreement, the bid security may be retained to compensate for the difference between the low bid and the next lowest bid. THE AMOUNT OF THE BID SECURITY IS SET EITHER AS A FIXED PRICE OR AS A PERCENTAGE OF THE BID; IT IS USUALLY ABOUT 5% OF THE ESTIMATED COST OF THE WORK OR OF THE BID PRICE.

51
Q

Performance Bond

A

A statement by a surety company that obligates the surety company to complete construction of the project should the contractor default on his or her obligations. If this happens, the surety company may complete construction hiring another contractor, or it may simply supply additional money to the defaulting contractor to allow construction to proceed. Performance bonds are mandatory on public work and advisable on private work. The cost of the performance bond is a percentage of the construction cost (around 3%) and is ultimately paid by the owner because it is included in the total amount of the contract price. THE INTERIOR DESIGNER AND OWNER SHUOLD VERIFY THAT THE BOND IS WRITTEN BY A SURETY ABLE TO ISSUE BONDS IN THE PARTICULAR STATE WHERE THE WORK WILL TAKE PLACE.

52
Q

A performance bond DOES NOT guarantee . . .

A

payment for labor and materials by a defaulting contractor.

53
Q

A performance bond ensures . . .

A

completion of the contract.

54
Q

Labor and Material Payment Bond

A

Required along with a performance bond to cover the payment for labor and materials by a defaulting contractor.

55
Q

What is the construction costs based on throughout the design process and up to completion of contract documents?

A

The interior designer’s estimate.

56
Q

When does the owner receive a firm price on a project?

A

With bidding or final negotiation.

57
Q

If the designer does a good jobs of tracking design changes and has a good idea of component costs . . .

A

the bid price should be fairly close to the estimated amount.

58
Q

What is a contractor’s bid dependent on?

A

Actual cost of subcontractor bids, the cost of the contractor’s own labor and materials, the cost of equipment rental, and the contractor’s indirect costs, overhead and profit. It is also dependent on the construction marketplace.

59
Q

How does the designer and owner have control of the bidding?

A

Contract Documents - These can affect the amount of bids by what they contain and how they are put together, beyond just the amount and quality of construction they represent. A poorly prepared set of document can cause a contractor to add a sum for unforseen items, however, clearly coordinated documents gives the contractor confidence in the scope and quality of the specified materials and extent of work required. They contractor can then include only the items shown in the documents.

60
Q

Alternate

A

A request included in the bidding documents asking the contractor to supply a price for some type of variation from the base bid. This may be a change in materials or level of quality of a material, a deletion of some component, or the addition of some construction element.

61
Q

What do alternates allow?

A

Flexibility in modifying the cost of a project when the bids are submitted, by varying the quantity or quality of portions of the job. They also allow the owner to select certain options based on firm prices rather than preliminary estimates.

62
Q

How should alternates be used?

A

Use alternates carefully. They should not be viewed as a substitute for conscientious cost estimating and reasonable design for the base-bid amount. The designer and all bidders need more time to prepare alternates.

63
Q

Alternate should NOT be what?

A

Manipulated to favor one bid over another.

64
Q

When reviewing bids, alternates should be used to . . .

A

arrive at the lowest overall bid.

65
Q

Unit Prices

A

Set costs for certain portions of the work based on individual quantities, such as linear feet or square yards, of installed material. When required, they are listed on the bid form and provide a basis for determining changes to the contract.

66
Q

Spaces for add- and deduct-amounts should be included on the __ ____.

A

Bid Form

67
Q

How are allowances used in bidding?

A

A allowance provides a way to allocate some amount of money for an item in the bid, even if the exact quantity or quality of the item is not known. The allowance is stated in the appropriate section of the specifications, so all bidders are using the same amount in their bids. The contractor must add to the allowance the cost for unloading, handling, and installing the item as well as costs for the contractor’s overhead and profit. IF the costs for the allowance are more or less than the original estimate, the contract sum is adjusted accordingly by change order.

68
Q

How is a negotiated contract worked out?

A

The owner, with the designer’s assistance, works out the final contract price and conditions with one contractor. Contractors are either selected by the owner from a reference or previous work experience, or several are interviewed by the owner and one will be selected based on qualifications and possibly a fee proposal. The interior designer may assist in organizing and participating in the selection interviews and the negotiation process. During negotiations, the contractor may point out problems, make suggestions, or propose changes in the design or specifications to reduce the cost of the project. If the agreement is negotiated with a GC, the subcontracts may be open to competitive bidding.