Lecture 3 - Construction Bidding Preparation

Question 1

Project Development cycle and steps
1. _______ establishment
2. ________ drawings and estimates
3. __________ and _______ design
4. ________
5. _______ contractor
6. construction ______

Answer 1

need, conceptual, preliminary, detail, bidding, select, period

Question 2

Establishing Need:
need recognized by _______ or users

Answer 2

owner

Question 3

Conceptual Drawings & Estimates:
very early _________ and cost ________
present to potential _______ _______
architect’s ________ ________
Preliminary _______ plan

Answer 3

design, estimate, funding sources, sketch drawings, cost

Question 4

Preliminary and Detail Design
end product is _______ (__________) and _____________ (__________) - binding elements of the contract
typically has two stages: _________ design and _________ design

Answer 4

plans, graphical, specifications contextual, preliminary, detailed

Question 5

Stage 1 - Preliminary design
allows the owner to review his ________ and ___________ status

Answer 5

needs, financial

Question 6

Preliminary design outputs:
drawings (____% completed)
specifications (____% completed)
preliminary __________

Answer 6

40, 40, estimate

Question 7

Stage 2 - Detailed design
prepare owner’s ________ (should achieve a determined ________ of accuracy)

Answer 7

estimate, range

Question 8

detailed design outputs
____ ____ of integrated drawings
____ ____ of specifications
detailed estimate (+- ______% accuracy)

Answer 8

full set, full set, 3

Question 9

Purpose of the detailed design is to establish a reference point in ___________ ____

Answer 9

evaluating bids

Question 10

What is bidding?
Construction bidding is the process of submitting a _________ (tender)
to __________, or manage the _________ of a construction project

Answer 10

proposal, undertake, undertaking

Question 11

Why bidding?
To provide _________ and thereby _______ costs

Answer 11

competition, reduce

Question 12

what are the two ways of obtaining bids methods/approaches

Answer 12

competitive bid and negotiated bid

Question 13

Is cost the only factor to consider?
* Lowest tender/bid will not necessarily provide the lowest cost; ____
_______ and ____ ________ may _______ cost
* Prudent owner will consider not only the amount of the bid but also
factors such as __________ and ___________ of the contractor, and
whether the bid is realistic

Answer 13

low trust, low control, increase, experience, capability, realistic

Question 14

Public bids - government, _______ authorities
* Basis for award is usually ______ ____ ______

Answer 14

public, lowest bid price

Question 15

Closed bids - _______ individuals & organization
* Basis for award is ___ __________ the ______ bid price

Answer 15

private, not necessarily, lowest

Question 16

Bid _______: Notice to Bidders/Invitation to bid
______________
Bid ________
Bid _________ by Tender
Bid ________, Acceptance and Documentation
Award of _________

Answer 16

request, prequalification, package, submission, opening, contract

Question 17

Bid Request: Notice to Bidders/Invitation to bid
A _________ announcing to prospective bidders
that _______ documents are available for consideration and
that the owner is ready to receive bids

Answer 17

document, design

Question 18

Bid Request: Notice to Bidders/Invitation to bid
Why: Project opportunity with _________ _____________ with
adequate details reaching quality bidders

Answer 18

necessary information

Question 19

Prequalification
* Why?
* To verify that if selected they will have both the
__________ and ___________ to successfully perform the work
they have been contracted to complete.

Answer 19

resources, expertise

Question 20

Prequalification: What to consider?
* ___________ competence and experience
* Current ________ position
* Bonding capacity (10 times Liquid Assets/Net Worth)
* Current amount of work underway
* Post project ________ history
* Defaults on contracts
* Small Business __________, MBE, WBE, DBE
* Safety __________
* Willingness to help reduce net project cost

Answer 20

technical, financial, litigation, qualifications, records

Question 21

What is Bid Package?
* A set of documents defining project ________ and details and on which a
contractor must base his decision to ____ or not to _____
* Proposal details – cost, duration, value engineering, etc

Answer 21

scope, bid, bid

Question 22

Bid Package Proposal form
filled and _________ by contractor
illustrates the ________ and commitment to perform the work

Answer 22

submitted, intent

Question 23

Lump-Sum Proposals
* Used for most ______ _________ buildings or other works
with well-defined _______ and requirements of the project

Answer 23

fully designed, scope

Question 24

Unit-Price Proposals
* Useful when the scope of the work ________ be well-defined
*Bidders are given __________ quantities

Answer 24

cannot, estimated

Question 25

General Conditions * A document that defines the ____________ of the parties affected by the Contract and describe the ___________ that will be used in the administration of the contract.

Answer 25

responsibilities, guidelines

Question 26

Supplementary/Special Conditions * Covers aspects of the contractual relation that are peculiar to a specific _______ An __________ to general conditions include modifications or additional articles

Answer 26

project, extension

Question 27

Addenda A document illustrating any ________, additions, omissions, __________, and contract conditions that arise ________ bidding is finalized

Answer 27

changes, corrections, before

Question 28

Addenda purposes To correct _______ in documents * To ________ to queries from bidders * To authorize design ________ to approve material substitutions * Takes __________ over original documents * Bids should clearly record which addenda have been considered

Answer 28

errors, respond, changes, precedence

Question 29

Decision to Bid: Why is it an important decision? * ”To bid” implies commitment of resources and incurring substantial _____ may not be ________ * Costs of bid preparation may be recoverable if bid is ____ * Approximately ____% of total bid value

Answer 29

cost, recoverable, won, 0.25%

Question 30

Bid Opening, Acceptance, & Documentation * Private Sector - No “____” procedures

Answer 30

rigid

Question 31

Public Sector - Following “__________” rules apply: * Receipt of sealed bids at the designated time and place * Owner/design reps evaluate if each bid is responsive * Acceptance and logging of name and amount for all responsive bidders * Summary of all lump sum and unit price items

Answer 31

inflexible

Question 32

Bid Opening * The date and time at which the bid opening is to take place marks the _______ _____ of the bidding period * Bid box at some central location * e-Bid is commonly adopted * Late bids - _____ accepted * No ________ to withdraw bids prior to bid opening

Answer 32

formal end, not, penalty

Question 33

Owner Notice to proceed Contractor It establishes the _________ relationship from the legal viewpoint * The ______ establishes the reference date from which the ___________ of the project is calculated – “Commencement”

Answer 33

contractual, date, beginning

Question 34

Award of Contract Owner provides successful Contractor: * _________ of intent to award—invitation to discuss and sign the contract * Notice to _________ —upon contract signing and owner readiness

Answer 34

notice, proceed

Question 35

Situations for a “letter of intent” * The project is ________ by other sources (than the owner), and the owner does not wish to _____ the bid prices that have been received.

Answer 35

delayed, lose

Question 36

a letter of intent should be __________ by a formal _________ later A letter of intent may or may not be ___________

Answer 36

followed, agreement, enforceable

Question 37

Contract Document that represents and reflects the ______ agreement between parties and is traditionally made between ________ and the ___________

Answer 37

legal, owner, contractor

Question 38

bidding timeline

Answer 38

notice to bidders, bid opening, sign contract, notice to proceed

Question 39

notice to bidders to bid opening is the _________ _________

Answer 39

bidding period

Question 40

bid opening, sign contract, and notice to proceed are in the ____________ ________

Answer 40

Acceptance period

Question 41

To Withdraw a Bid * A contractor must satisfactorily establish the following: * A __________ was made. * Written _______ given to the agency

Answer 41

mistake, notice

Question 42

Rejection of Bids * _______ in bid requests to state that the owner is not ________ to accept the lowest or any tender. * A person _______ be forced into a contract against their will.

Answer 42

usual, bound, cannot