Chapter 7

Question 1

Statement about Bidding :

Answer 1

Statement about Bidding :

• A bidder must comply with all express terms of the contract to qualify
• If there is more than one bidder competing formally for a potential contract, then the laws of competitive bidding will apply
• The Canadian courts continue to modify the specific areas of competitive bidding law, thus property managers must keep up-to-date on changes

Question 2

The repair of damage due to wear and tear can best be described as:

Answer 2

The repair of damage due to wear and tear can best be described as:
- Corrective maintenance

Question 3

Consider the following statement “The initial estimate that a property manager receives from a contractor or supplier is legally binding and can be relied upon” TRUE / FALSE?

Answer 3

FALSE, the true is : The initial estimate (quote) is not guaranteed or binding until the contractor has agreed in a contract that this is an all-inclusive price. ==> can not be relied upon

Question 4

Blue Sailors Ltd, has issued an invitation to bid on a contract to provide parts and supplies for their newest line of vaccum cleaners. Faeden Corp, has submitted a non-compliant bid. Despite the lack of compliance, Blue Sailors accepts Faeden’s bid.

Answer 4

Blue Sailors Ltd, has issued an invitation to bid on a contract to provide parts and supplies for their newest line of vaccum cleaners. Faeden Corp, has submitted a non-compliant bid. Despite the lack of compliance, Blue Sailors accepts Faeden’s bid.
==> Blue Sailors Ltd has breached its contracts with all other bidders who were compliant.

Question 5

Strategic procurement involves looking at the whole life cycle of the goods and services. TRUE/FALSE ?

Answer 5

Strategic procurement involves looking at the whole life cycle of the goods and services. TRUE

Question 6

When selecting supply or service providers, the purchaser should consider environmental concerns, appearance, and the cost of delivery, among other important decision factors.

TRUE / FALSE ?

Answer 6

When selecting supply or service providers, the purchaser should consider environmental concerns, appearance, and the cost of delivery, among other important decision factors.

TRUE

Question 7

When preparing a janitorial contract, the contract should specify:

Answer 7

When preparing a janitorial contract, the contract should specify:

• which party will provide the cleaning supplies and equipment
• the frequency of certain tasks, such as window cleaning
• the specific standards and performance expected

Question 8

in competitive bid solicitation, the obligation to fully disclose the true nature of the work, including any hidden dangers and the rules under which the competition will be run, is :

Answer 8

in competitive bid solicitation, the obligation to fully disclose the true nature of the work, including any hidden dangers and the rules under which the competition will be run, is : an implied term.

Question 9

A purchaser in a competitive bid solicitation finds that new rules are needed in order for the project to be succesful. Can the purchaser cancel the competition and start again ?

Answer 9

A purchaser in a competitive bid solicitation finds that new rules are needed in order for the project to be succesful. Can the purchaser cancel the competition and start again ?

Yes, but only if the owner specified the right to cancel the competition in the invitation document.