Chapter 30: Bidding and Negotiation of Contracts

Question 1

request for proposal

Answer 1

is a document prepared by the client. It contains what specific information the client is seeking from the interested design firm. This can include:
the full scope of services request
the project description
the proposal requirements section
the due date for the submission

Question 2

what is the first step in the contract admin phase

Answer 2

finding a contractor

Question 3

what is a negotiated contract

Answer 3

owner selects a contractor and they negotiate a price and terms

Question 4

what is a bid contract

Answer 4

or tendered contract

drawings and specs are completed then sent to several contractors who bid. the owner then selects the contractor based on cost, experience and schedule

Question 5

why must you have clearly defined lines for bidding

Answer 5

to protect the owner from disreputable contractors

Question 6

can bidding be open to every contractor

Answer 6

yes or no. can be a restricted prequalified list or any contractor depending on the client.

Question 7

what’s the point in selecting a pre-qualified list of contracotrs

Answer 7

to select only contractors that meet certain standards- reliable, experience, financial, and performance

Question 8

name and describe the ways you get contractors to submit bids on a project- how do you let them know there is a bid open

Answer 8

1. advertising publicly- published info in newpapers, magazines or online- usually done for public work
2. invitation to bid- the prequalified contractors will get an invitation to bid. same info as the ad

Question 9

who makes the bid documents available for the contractor

Answer 9

the designer’s office

Question 10

what does each bidder get as far as documents from the design office (not detailed list)

Answer 10

prints of the drawings
specifications
bidding documents
bid forms

this can also be put in a central plan room that they can go look at them

Question 11

what type of specification gets the most requests for substitution consideration

Answer 11

proprietary specs

Question 12

conditions on which substitutions will be considered should be clearly defined where?

Answer 12

in the instructions to bidders

Question 13

how early before the bid opening must a bidder submit requests for subsitutions

Answer 13

10 days before the bid opening

Question 14

who proves that the substitution of a material is the same as the original- the designer or bidder

Answer 14

the bidder

Question 15

what does the interior designer do once they review and approve a submitted subsitute

Answer 15

issue an addendum and sends it to all the bidders

Question 16

Addendum is

Answer 16

A wriotten or graphic document issued by ID before the execution of the project
Issued during bidding process

Question 17

when would you issue an addendum

Answer 17

when there are questions that need clarification
errors that are discovered
changes that the owner or designer makes

basically any changes made to the design BEFORE the contract is awarded to a contractor- but BEFORE the bids are submitted

Question 18

how long do you have to send out an addendum to all bidders once it’s issued

Answer 18

4 days

Question 19

what’s the purpose of a pre-bid conference

Answer 19

alll of the people involved in the design of the building have a meeting for the bidders to ask questions to or you can explain particularly important conditions of the project

Question 20

what is the bid opening

Answer 20

the exact date and time and location that the bids will be accepted at . you can accept late bids if no bids have been open.

public bid openings- the bids are read aloud

dont award the project at the bid opening, just read them all

Question 21

how long after the bid opening should you make your decision by

Answer 21

usually 10 days. let all the bidders know your decision

Question 22

what are the options for the OWNER if all of the construction bids come in over budget

Answer 22

rebid or renegotiate (usually the worst option)
authorize an increase in the construction cost and proceed
work with the designer to revise the scope of the project to reduce costs
abandon the project

Question 23

who prepares the bidding documents

Answer 23

the designer using standard forms or forms provided by the owner
Not a legal form of the contract documents

Question 24

what’s included in the bidding documents

Answer 24

• ad or invite to bid
  instructions to bidders
  bid forms
  bid security info
  requirements for a performance bond if require
  requirements for a labour and material payment bond if required
  potential certificates of insurance
  drawings
  specifications
  general and supplementary conditions of the contract
  addenda issued before the receipt of bids
  agreement between owner and contractor

Question 25

what is the instructions to bidders

Answer 25

outlines the procedures and requirements that bidders must follow when submitting bids, and how the bidders are considered, and how they can get the bidding documents, if you can do substitutes, if they require bonds,

Question 26

what is a bid form

Answer 26

standard form which all the bidders enter the required info

includes: space for base bid, price for alternates (if any), unit prices (if any), number of days for completion, acknowledgment that you could the addenda and signed

Question 27

what is bid security

Answer 27

used to ensure the successful bidder will enter into a contract with the owner- like a security deposit - maybe be a check or bid bond so that if they don’t enter the agreement, the owner keeps the security and moves on to the next contractor.

usually set as a fixed price or a percentage of the bid- around 5%

Question 28

what is a performance bond

Answer 28

the sucrety a company will be obligated to complete the construction if the contractor doesn’t. Can hire another contractor or supply additional money to the defaulting contractor to get the work done.

Question 29

what type of work MUST you have a performance bond for

Answer 29

public work

Question 30

how much does a performance bond usually cost and who pays for itr

Answer 30

usually a perfecntage of the construction cost (3%)

paid for by the owner because it’s included in the contract price supplied by the contractor

Question 31

what is a labour and material payment bond

Answer 31

guarantees payment for labour and materials

Question 32

what can effect the cost of a bid by a contractor- what outside factors

Answer 32

the marketplace- if jobs are hard to come by they’ll bid cheaper

Question 33

what can effect the cost of a bid by a contractor that the designer has control over

Answer 33

how well the drawings and specs are prepared. if the contractor things they are bad, the contractor will add more money in to his bid for unforseen items that will come up due to poor drawings and specs

Question 34

what is an alternate, add-alternate and deduct alternate

Answer 34

a change to the base bid that’s in the bidding documents- like chancing the flooring from carpet to hardwood

offer some flexibility in modifying the cost of the project.

add alternate- if they add to the base bid

deduct-alternate if they reduce the base amount

Question 35

Unit Price

Answer 35

Set costs for certain portions of the work based on individual quantities

Question 36

why would a designer ask for unit prices to be included in the contractor’s bid

Answer 36

like a cost per square foot for adding parquet flooring. even though you don’t know the full extent, you can compare different bid’s easily

Question 37

if the costs of allowance are more or less then original estimate the contract sum is adjusted by

Answer 37

a change order

Question 38

Contract negotiation

Answer 38

The interior designer may help the owner decide which contractor to use for bid or tendered projects. The interior designer may also help negotiate final pricing and conditions. Contract negotiation is usually done through a series of interviews with preferred candidates.

Question 39

Performance Specifications

Answer 39

Performance specifications describe the expected performance of the specified items. Any item that meets the performance criteria can be used in the project, regardless of the brand name. How these required results are met is left up to the contractor, subcontractor, or vendor.

Performance specifications are often used for custom components. They describe a particular result that is not already manufactured. This specification is more challenging to write because the designer must list all expected criteria and test methods

Question 40

Descriptive Specifications

Answer 40

When many similar products are available, descriptive specifications allow the designer to describe the exact standards required without selecting a particular manufacturer.

Question 41

Reference specifications

Answer 41

Reference specifications are like descriptive specifications as they describe a material, finish, or other product based on the designer’s requirements rather than a trade name. But, reference specifications are generally based on standards set by an established authority or testing facility such as the American Society for Testing and Materials (ASTM) or the American National Standards Institute (ANSI).

Question 42

Master specifications

Answer 42

Master specifications are prewritten guide specifications like MasterSpec® or CSI MasterFormat®.

Question 43

Proprietary specifications

Answer 43

are the most restrictive specifications in that they call out a specific manufacturer’s product. These give the interior designer complete control over what is installed. They are easier to write than other types and are generally shorter.

However, they do not allow for competitive bidding and may force the contractor to use materials, or products that are difficult or expensive to procure, or that require a long delivery time.