PPT3 Flashcards
- _______ is a common practice for procurement that involves inviting multiple vendors to bid for the same material, product, or service per the business’s requirement.
Competitive Bidding
- Competitive Bidding allows _______, _______, and _______ that the outcomes represent the best value.
transparency, equality of opportunity, the ability to demonstrate
- Bid Documents include _______, _______, _______, _______, _______, and _______.
plans, specifications, BOQ (Bill of Quantities), Terms of References (TOR), eligibility requirements, government licenses
- Government Licenses required in bidding may include _______, _______, _______, _______, and _______.
PCAB, Business Permits, BIR certificates, SSS certificates, DOLE certificates
- The first step of the Bidding Process is the _______, which is normally published in local or national papers.
Invitation to Bid
- The _______ involves the submission of documents.
Pre-qualification of Bidders
- A _______ is a meeting with prospective bidders to discuss details about the project being bidded out, including a session for Q & A on the project.
Pre-Bid Conference
- Submission of Bids can be either _______ or _______.
closed bid, open bid
- Evaluation of Bids is conducted by the _______ or _______.
PBAC (Project Bids & Awards Committee), Construction Management Team (CM T)
- The Awarding of Bids is done through a document called _______.
NTA (Notice of Award)
- The Notice to Proceed (NTP) is issued _______ days after the NTA.
30
- The project starts _______ days after the Notice to Proceed.
15
- _______ are legal documents that ensure contractors fulfill their stated obligations on a project. - Bid Bonds
- _______ is a guarantee from a surety company to the project Owner that a contractor is able to comply the obligations of a contract…
Bid Bonds
- Bid Bonds are normally set at _______% to _______% of the contract amount.
5, 10
- _______ normally secured before the release of Down Payment (DP).
Performance Bonds
- _______ are secured so that retention may be released.
Warranty Bonds
- _______ are based on a series of line items identifying discrete tasks or scopes of work.
Unit Price Contracts
- Is a derivative measure of a Labor only Contract without GMQ. Normally Pricing of per unit contract is based on volume, surface area, no. of pieces and weight in kgs or tons installed .
Unit Price Contract
- The basis of a Unit Price contract is based on the estimates _______ normally provided by the ( 3rd party) _______.
(BOQ) bill of Quantities; independent Construction Quantity Surveryor(CQS)
- In a Unit Price Contract, the _______ is paid for the actual quantity of each line item performed as measured in the field during construction
contractor
- Under a unit price contract, contractor is paid for the actual quantity of each line item performed as measured in the field . Each unit price includes all _______, _______, _______, _______, and _______ attributable to that scope of work.
labor , materials , equipment , overhead and profit
- They are commonly used on
Public Works Projects; Horizontal construction such as roads.
- Unit Price Contract are best suited for construction work consisting of _______ that are easily measured.
repetitive task
- The greatest risk in these arrangements is the inability to identify the _______ until after work is complete, which makes it easier for cost manipulation to occur……
TOTAL COSTS
- A contract such that a contractor is paid for all of its allowed expenses ,plus additional payment to allow for profit.
Cost Plus Contract
- are generally used if the party drawing up the contract has budgetary restrictions or if overall scope of the work can’t be estimated properly in advance.
Cost Plus Contract
- The contract can vary only in _______
the payment of profit or fee component to the Contractor
- Contractor compensation is based of the completion levels on a fixed sum independent of the final project cost.
Cost Plus Fixed Fee
- in this ,contractor will receive income by using a pre-decided percentage of the cost of the contract.
Cost Plus Fixed % Fee
- certain contracts may have an additional incentive covenant, which states that in case of early completion of the completion levels as mentioned in the agreement, the contractor is eligible to receive and incentive as mentioned in the terms of agreement.
Cost Plus Fixed % + Incentive
- Contractor has sufficient funds to execute the contract as the contract cost will not be immediately paid to the contractor; he will have to pay for the expenses first. Therefore, _______ should there with the contractor (KTR).
adequate financing arrangements
- A team should be there to ensure that proper _______, _______, _______, and _______ are maintained for the contract under consideration.
accounting , budgeting, audit, and other records
- Bid Documents
Plans, Specifications, BOQ, Terms of References (TOR), Eligibility Requirements, Government Licenses
- Sequence of the Bidding Process
Invitation to Bid, Pre-qualification, Pre-bid Conference, Submission of Bids, Evaluation of Bids, Awarding, Notice to Proceed, Start of Project, Delivery of Project
- Types of Bonds
Performance Bond, Warranty Bond
- Advantages of Cost-Plus Contracts
Higher quality due to contractor incentive, Less chance of overbidding, Lower overall cost
- Types of Cost-Plus Contracts
Cost plus fixed fee, cost plus fixed % fee, cost plus fixed % + incentive
- Common Applications of Unit Price Contracts
Public Works, Road Construction
- When to use a cost-plus contract?
There is a proper system to check the expense, A proper communication channel is established, All the terms and conditions, Contractor has sufficient funds, a team should be there
