Chapter 30: Bidding and Negotiation of Contracts

Question 1

what is the first step in the contract admin phase

Answer 1

finding a contractor

Question 2

what is a negotiated contract

Answer 2

owner selects a contractor and they negotiate a price and terms

Question 3

what is a bid contract

Answer 3

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 4

why must you have clearly defined lines for bidding

Answer 4

to protect the owner from disreputable contractors

Question 5

can bidding be open to every contractor

Answer 5

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

Question 6

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

Answer 6

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

Question 7

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 7

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 8

who makes the bid documents available for the contractor

Answer 8

the designer’s office

Question 9

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

Answer 9

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 10

what type of specification gets the most requests for substitution consideration

Answer 10

proprietary specs

Question 11

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

Answer 11

10 days before the bid opening

Question 12

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

Answer 12

the bidder

Question 13

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

Answer 13

issue an addendum and sends it to all the bidders

Question 14

when would you issue an addendum

Answer 14

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 15

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

Answer 15

4 days

Question 16

what’s the purpose of a pre-bid conference

Answer 16

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 17

what is the bid opening

Answer 17

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 18

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

Answer 18

usually 10 days. let all the bidders know your decision

Question 19

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

Answer 19

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 20

who prepares the bidding documents

Answer 20

the designer using standard forms or forms provided by the owner

Question 21

what’s included in the bidding documents

Answer 21

• 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 22

what is the instructions to bidders

Answer 22

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 23

what is a bid form

Answer 23

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 24

what is bid security

Answer 24

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 25

what is a performance bond

Answer 25

the surety 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 26

wwhat type of work MUST you have a performance bond for

Answer 26

public work

Question 27

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

Answer 27

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 28

what is a labour and material payment bond

Answer 28

guarantees payment for labour and materials

Question 29

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

Answer 29

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

Question 30

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

Answer 30

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 31

what is an alternate, add-alternate and deduct alternate

Answer 31

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 32

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

Answer 32

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