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CE LAW > Finals > Flashcards

Finals Flashcards

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1
Q

Types of Bidding

A 
Single Stage Bidding
Two Stage Bidding
Open Bidding
Negotiable Bidding
Serial Bidding
Selective Bidding
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2
Q

Bids are usually based on complete design

A

Single Stage Bidding

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3
Q

Bids based on partially developed consultant design
• Contractors assists with final development of design and tender documents
• First stage bidder may bid / negotiate second construction stage

A

Two Stage Bidding

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4
Q

• Contractors invited to bid for a contract through advertisements
• Can result to a large number of unsuitable firms bidding for the work • Can result in wasted time and effort in selection process
• Best prices by firms wanting to establish themselves

A

Open Bidding

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5
Q

• Consultants / Clients will normally have a list of contractors who undertake different types of contracts
• Most common arrangement because it allow price to be the deciding criterion
• Contractors are invited to bid on their proven record in relation to the type and size of contract and their reliability

A

Selective Bidding

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6
Q

• One contractor is approached
• Used mainly for specialist work, such case there are limited number of contractors to do the work in the market
• Based on one to one discussion with contractor

A

Negotiated Bidding

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7
Q

3-party contract in which a bonding company lends its

reputation and financial resources to a contractor for a feel

A

Bonding

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8
Q

2-party contract in which an insurance company MAY accept

financial risk for a fee

A

Insurance

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9
Q

Need for bonds

A
  1. Poor Management
  2. Inadequacy of bids
  3. Personnel personal problems
  4. Credit Problems
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10
Q

Factors that the bonding company must consider in reviewing application for bonds

A
  1. CASH SITUATION
  2. CHARACTER
  3. CAPACITY
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11
Q

Types of Construction Bonds

A
  1. Bid bonds – usually 5~10% of the contract price
  2. Downpayment /Advanced payment bonds – equal to
    down payment
  3. Performance bonds – usually 20% of the contract price
  4. Warranty / Guarantee bonds – usually 10% of the contract price
  5. Labor and material payment bonds – less common
  6. Maintenance bond – less common
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12
Q

Usually used as a bid security

A

Bid bonds

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13
Q

Bid bonds Purpose?

A

Purpose: If the contractor withdraws his bid subsequent to his
acceptance, ensures that the bonding company will pay to the owner
an amount of money equal to the difference between the bid
withdrawn and the next lowest accepted bid

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14
Q
  1. Downpayment / Advanced Payment Bonds
A

Purpose:
• If the contractor engaged to do work cannot finish the job
(reason must not be attributable to the owner), it ensures the
owner will be able to recover the unrecouped downpayment or
advanced payment

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15
Q

. Performance Bonds

A

Purpose:
• If the contractor engaged to do work cannot finish the job
(reason must not be attributable to the owner), it ensures the
owner funds will be made available to make certain that work
will be completed by another contractor acceptable to the
owner at no extra cost

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16
Q
  • Usually used as a substitute for retention.

- Sometimes called as Retention Bond

A

Warranty Bonds

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17
Q

Categories of Insurable Risks

A 
Owner’s interest
a. physical damage to work in progress
b. claims from 3rd parties
Contractor’s interest
c. all of the owner’s interest
d. own business operation
Designer’s interest
e. business operation
f. errors and omission
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18
Q

Insurance

ensures money will be made available to…

A 
A. Physical damage to work in progress
B. Claims from third parties
C. All of the owner’s interest
D. Own business operation – Other insurable risks:
E. Business operation: Designer
F. Errors and omission
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19
Q

Arrangement in Insurance

A

TRADITIONAL ARRANGEMENT and WRAP-UP ARRANGEMENT

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20
Q 
Insurance where the 
Main contractor
- insures own operations
- protects owner as additional insured
Subcontractor
- provides own protection
A

TRADITIONAL ARRANGEMENT

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21
Q

Insurance where
Owner
- provides blanket coverage to cover self, main
contractor, subcontractor, suppliers, and
consultants

A

Wrap-up Arrangement

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22
Q

Construction Risk Insurances

A
  1. Contractor’s All Risk Insurance (CARI)
  2. Public liability Insurance
  3. Employer’s Liability Insurance
  4. Environmental Insurance
  5. Non-negligence Insurance
  6. Unexpected archaeological discovery Insurance
  7. Consequential loss
23
Q

CARI stands for what?

A

Contractor’s All Risk Insurance

24
Q

Provides indemnity on all risks of sudden and unforeseen physical
loss or damage to permanent and temporary works during the
construction period

A

Contractor’s All Risk Insurance (CARI)

25
Q

Also called as “Third Party Liability Insurance”

A

Public Liability Insurance

26
Q

Provides indemnity in respect of legal liability for:
– accidental bodily and personal injury
– sickness, illness, disease
– death of any person (other than an employee of the insured parties)
– accidental injury or damage to any property, real or personal, belonging to
third parties
• Covers the developer, owner, employer only; or the main or
management contractor and all trade/subcontractors.

A

Public Liability Insurance

27
Q

For awards of damages, costs or settlements (including defence
costs) for which a director or officer is legally liable

A

Directors and Officer’s Insurance

28
Q

• Resulting from a claim made against them for any act, error or
omission in their capacity as a director or officer of the
company.
• Fines and penalties are typically excluded

A

Directors and Officer’s Insurance

29
Q

• It covers claims from third parties for matters arising out of the
conduct of the insured’s professional business.
• Cover automatically extends to all partners/directors/LLP
members and employees.

A

Professional Indemnity Insurance

30
Q

Insurances Personal to members

A
  1. Professional Indemnity Insurance

2. Director’s and Officers Liability Insurance

31
Q

Developers are used to carrying risk. It is part and parcel of their
business. The consequential loss risk on a construction site is a
high one as there are so many factors that could delay
completion and then so many headings under which additional
expense or actual loss of anticipated income could arise

A

Consequential Loss

32
Q

It rests on the principle that archaeological remains are a valuable and finite
part of our heritage that should ideally be preserved in situ even if they are not
scheduled.

A

Archaeological Discovery Insurance

33
Q

additional costs incurred in relation to the delayed completion
of the development

A

Delay costs

34
Q

incurred in undertaking a scheme of
archaeological work, including fieldwork, post-excavation work and
preparation of results

A

• Additional archaeological costs

35
Q

– can be incurred as a result of the necessary cancellation

of all or part of a project

A

Cancellation costs

36
Q

– the developer can incur this cost as a result of a requirement
to revise the layout or constructional details of a project

A

• Redesign costs

37
Q

in extreme circumstances an unexpected discovery might
mean a loss of space or even a whole storey with the result that the market
value of the development is reduced.

A

• Loss of value

38
Q

The insurance provides an indemnity to developers in respect of
any expense, liability, loss, claim or proceedings incurred as a
result of damage to property (other than the constructional
works) arising from the works being done and due to collapse,
subsidence, heave, vibration, weakening or removal of support
and lowering of ground water

A

Non-Negligence Insurance

39
Q

To ensure that compensation would be available to employees who
suffer illness or an accident in the workplace

A

Employer’s Liability Insurance

40
Q

This insurance play in protecting and facilitating the reuse and
redevelopment of such sites.

A

Environmental Insurance

41
Q

One contractor is approached
Used mainly for specialist work, such case there are limited number of contractors to do the work in the market
Based on one to one discussion with contractor

A

Negotiated Bidding

42
Q

Bids are invited from a selected list on the basis of a typical bill of quantities
The contractor chosen normally submits the lowest price who undertakes to enter into a series of contracts to carry out the work using the rates in the Bill of Quantities
Method reduces the bid costs and normally results in contractors quoting low rates in order to obtain a guaranteed program of work
Usually for repetitive minor works
Can escalate to partnering agreement

A

Serial Bidding

43
Q

10 ELEMENTS OF A COMPLETE BIDDING SYSTEM

A 
1 Creation of Bid Documents\
2 Bid Advertisement
3 INVITATION TO BID
4 Document Distribution(PRE-BID CONFERENCE)
5 Addenda Notification and Distribution
6 Submission of Bid Security
7 Submission of Bid Security
8 Submission of Bid
9 Bid Evaluation
10 Post Qualification
44
Q

10 ELEMENTS OF A COMPLETE BIDDING SYSTEM

A 
1 Creation of Bid Documents\
2 Bid Advertisement
3 INVITATION TO BID
4 Document Distribution(PRE-BID CONFERENCE)
5 Addenda Notification and Distribution
6 Submission of Bid Security
7 Submission of Bid Security
8 Submission of Bid
9 Bid Evaluation
10 Post Qualification
11. Award, Implementation and Termination of Contract
45
Q

What happens in a PRE-BID CONFERENCE?

A
  1. Attended by Procuring Entity/Owner’s Representatives and Consultants (Project Manager, Quantity Surveyor, Procurement Officer) and the prospective bidders (Contractors or Suppliers)
  2. Project Manager to discuss the Project Brief
  3. Distribution of Bid Documents
  4. Site Visit and Inspection
46
Q

When at the middle of bidding process, some project details changed

A

Addenda Notification and Distribution

47
Q

ELEMENTS OF A COMPLETE BIDDING SYSTEM serve as a guarantee that, after receipt of the Notice of Award, the winning bidder shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security.

A

Submission of Bid Security

48
Q

is the stage where the bidder with the LCB or HRB undergoes verification and validation whether he passed all the requirements and conditions as specified in the Bidding Documents.

A

Post Qualification

49
Q

is the stage where the bidder with the LCB or HRB undergoes verification and validation whether he passed all the requirements and conditions as specified in the Bidding Documents.

A

Post Qualification

50
Q

purpose: to prevent questionable practice of bid peddling (shopping of subcontractors prices) by the main contractors

A

BID DEPOSITORY

51
Q

BDO

A

bid depository office

52
Q

describe the material and workmanship required for a development and how it should be done in a desired way. Usually, they do not include cost, quantity or other information that can be found in the plan or drawing therefore it is required that it be read alongside other information such as BOQ/BOM, schedules and drawings.

A

Specifications

53
Q

General principle in specifications writing:

A
  1. Arrange words to command attention
  2. Eliminate distraction and diversion
  3. Use least amount of words
  4. Choose words carefully

CE LAW (3 decks)

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