DOMAIN 5: PROCUREMENT Flashcards
What is the difference between instructions to bidders and instructions to proposers?
Instructions to Bidders
- Inform bidders how to obtain procurement documents
- How to submit requests for clarifications, interpretations, and substitutions
- How addenda will be transmitted
- How to submit the bid
Instructions to Proposers
- Establish ground rules and proper methods of obtaining clarifications or interpretations and define documents such as addenda
What is the purpose of addenda and when are they issued?
- Addenda modify the procurement documents
- Addenda are issued after the bidding period starts and before bids are submitted to the owner
What is bid shopping?
The unethical practice of revealing the price of one subcontractor to obtain a lower price from another subcontractor during procurement.
What are the four procurement options?
- Low Bid – Owner selects contractor with lowest bid
- Best Value: Total Cost – Owner selects contractor based on total cost
- Best Value: Fees – Owner selects contractor in which fees, rather than total construction cost, are considered
- Qualifications-Based – Owner selects contractor based on contractor’s qualifications
What are the six methods used as a basis of payment for construction?
CLOSED BOOK
* Stipulated Sum
* Unit Price
OPEN BOOK
* Guaranteed Maximum Price
* Cost-Plus with GMP
* Cost-Plus without GMP
* Target Price
What are some reasons to have a contingency in a construction bid?
- Incomplete documents
- Unverified costs
- Errors in pricing
- Costs related to dispute resolution, claims, and legal fees
- Costs for penalties related to weather and other
circumstances - Default by a subcontractor or supplier
What information should be made available to bidders, proposers, and contractors?
- Preliminary schedules
- Project budget info
- Existing condition info
- Survey info
- Environmental assessment info
- Existing material infor
- Existing hazardous material info
- Geophysical data
- Geotechnical data
- Permit application
