Chapter 30: Bidding and Negotiation of Contracts Flashcards
request for proposal
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
what is the first step in the contract admin phase
finding a contractor
what is a negotiated contract
owner selects a contractor and they negotiate a price and terms
what is a bid contract
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
why must you have clearly defined lines for bidding
to protect the owner from disreputable contractors
can bidding be open to every contractor
yes or no. can be a restricted prequalified list or any contractor depending on the client.
what’s the point in selecting a pre-qualified list of contracotrs
to select only contractors that meet certain standards- reliable, experience, financial, and performance
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
- advertising publicly- published info in newpapers, magazines or online- usually done for public work
- invitation to bid- the prequalified contractors will get an invitation to bid. same info as the ad
who makes the bid documents available for the contractor
the designer’s office
what does each bidder get as far as documents from the design office (not detailed list)
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
what type of specification gets the most requests for substitution consideration
proprietary specs
conditions on which substitutions will be considered should be clearly defined where?
in the instructions to bidders
how early before the bid opening must a bidder submit requests for subsitutions
10 days before the bid opening
who proves that the substitution of a material is the same as the original- the designer or bidder
the bidder
what does the interior designer do once they review and approve a submitted subsitute
issue an addendum and sends it to all the bidders
Addendum is
A wriotten or graphic document issued by ID before the execution of the project
Issued during bidding process
when would you issue an addendum
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
how long do you have to send out an addendum to all bidders once it’s issued
4 days
what’s the purpose of a pre-bid conference
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
what is the bid opening
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
how long after the bid opening should you make your decision by
usually 10 days. let all the bidders know your decision
what are the options for the OWNER if all of the construction bids come in over budget
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
who prepares the bidding documents
the designer using standard forms or forms provided by the owner
Not a legal form of the contract documents
what’s included in the bidding documents
- 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
what is the instructions to bidders
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,
what is a bid form
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
what is bid security
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%
what is a performance bond
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.
what type of work MUST you have a performance bond for
public work
how much does a performance bond usually cost and who pays for itr
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
what is a labour and material payment bond
guarantees payment for labour and materials
what can effect the cost of a bid by a contractor- what outside factors
the marketplace- if jobs are hard to come by they’ll bid cheaper
what can effect the cost of a bid by a contractor that the designer has control over
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
what is an alternate, add-alternate and deduct alternate
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
Unit Price
Set costs for certain portions of the work based on individual quantities
why would a designer ask for unit prices to be included in the contractor’s bid
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
if the costs of allowance are more or less then original estimate the contract sum is adjusted by
a change order
Contract negotiation
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.
Performance Specifications
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
Descriptive Specifications
When many similar products are available, descriptive specifications allow the designer to describe the exact standards required without selecting a particular manufacturer.
Reference specifications
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).
Master specifications
Master specifications are prewritten guide specifications like MasterSpec® or CSI MasterFormat®.
Proprietary specifications
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.
