Preconstruction Activities

Question 1

competitive bidding

Answer 1

• Results in lowest construction cost

Guidelines must be defined to protect owner from unethical bidding practices and bad contractors

Question 2

value based selection

Answer 2

Value based selection
• Process that considers more than just the lowest bid
Quality schedule and personnel

Question 3

public bidding vs negotiation

Answer 3

• Public bidding for public projects
• Negotiation: Owner with assistance of architect works out a final price with one contractor
○ Contractor is known or referred to owner
○ Multiple contractors are interviewed and one is chosen based on qualifications
Subcontractors may still be open to competitive billing

Question 4

what is prequalification based on

Answer 4

• Financial qualifications
	• Personnel 
	• Experience
	• References
	• Size
	• Bonding
Special qualities

Question 5

purpose of prequalification

Answer 5

• Consider proposals from firms who meet certain standards

When allowed in public work it is usually based on financial assets and size of the firm

Question 6

two ways to notify bidders

Answer 6

• Advertisement: published ads in papers or journals open to any contractor
○ Usually written by arch
○ Can also be put online
• Invitation to bid: sent to specific contractors when contractors must be prequalified
○ Bid info is sent along with dwgs and specs
Enough bidders should be invited to encourage competitive pricing

Question 7

things to include in advertisement

Answer 7

• Call for bids
	• Project name and location
	• Owner and arch
	• Project description
	• When and where bids are due
	• Who and where docs can be obtained / viewed
	• Fee
	• Amount of bonds 
	• Submitting procedures
Public or private

Question 8

how are bid docs made available

Answer 8

• Each bidder receives hard copy of docs (with or without a deposit) deposits may be refunded if docs are in good condition
Extra sets can be bought by contractor

Question 9

how can a selected list of bidders view docs

Answer 9

• Physical copy sent at no charge
• Central plan room
• Purchased at printing companies
Online project website

Question 10

when are substitutions made

Answer 10

• When a project has proprietary specs or limited manufacturers
Contractor can request a sub

Question 11

addenda

Answer 11

• Issued by arch during bid period prior to contract that modifies the docs by addition subtraction clarification or correction
Issued to bidders no later than four or five days before receipt of bids

Question 12

pre bid conference

Answer 12

• Chance for bidders to ask questions and for architects to emphasize important parts of the project
• Good for renos or additions so bidders can see the proj
• Large projects may have multiple meetings for different contractors
Meeting minutes should be sent to all after conference

Question 13

bid opening

Answer 13

• Public bids are opened and read publicly
○ Usually conducted by arch
○ Bid log filled with observations is taken and sent to bidders
○ Decision is made in 7-10 days
• Instruction to bidders tell details of bid opening
Private bids may be read privately and results distributed later

Question 14

evaluation and awarding of bid

Answer 14

• Owner and arch evaluate together
• May reject and incomplete bids
• Chose lowest bid while taking into account alts, subs, subcontractors and qualifications
Notify all bidders of selections

Question 15

if all bids exceed budget

Answer 15

• Owner can rebid, architect assists with no compensation
• Owner may increase cost
• Owner may revise scope and rebid
Owner may abandon project

Question 16

bidding docs

Answer 16

• Advertisements
	• Instructions
	• Supplementary instructions
	• Bid forms
	• Security info
	• Performance bond
Labor and material payment bond

Question 17

a701

Answer 17

Instructions to bidders includes
• Bidders represent understanding of info
• Where bid docs may be found / aquired and deposit cots
• Bidder must review and correct and mistakes or misunderstandings 7 days prior to bid date
• Submit request for approval for substitutions 10 days prior to opening date
• Addenda must be transmitted to all bidders no later than 4 days prior to date of bid opening
• How the bid is to be completed and with what security
• Bids may be modified or withdrawn before date if written over original sig - all may be resubmitted if it meets deadline
Procedures for reviewing bids

Question 18

post bid info

Answer 18

• A305 contractors qualifications statement
• Contractor must give owner
○ Summary of work
○ Names of products suppliers ect
○ Names of companies to perform work
• Owner must give reasonable evidence of financial agreements no later than 7 days prior to expiration of time for withdrawal
• Performance bond and payment bond
Cost usually included in bid price unless required to be furnished after reciept of bids

Question 19

bid forms

Answer 19

• Standardized form so its easy to review all 
	• Includes space for 
		○ Base bid
		○ Alts and subs
		○ Unit price
		○ Calendar work days
		○ Addenda
Signiture and seal

Question 20

bid security

Answer 20

• Required to ensure that a bidder will enter a contract with owner
• Check or bid bond
• Bid security may be retained to compensate for difference between low bid and next lowest bidder if original option does not want the contract
Fixed price or percent of bid… usually 5% cost of construction or bid price

Question 21

performance bond

Answer 21

• Statement by a surety company that obligates complete construction of the project in the event that the contractor defaults on obligations
• Does not guaruntee payment for labor / materials
• Surety company may then complete construction by hiring another contractor
• Usually mandatory in public work but also helpful in private
• Cost is paid by owner and included in cost of construction
Arch or owner must verify bond legitamacy

Question 22

labor and material payment bonds

Answer 22

Protects owner against possibility of subcontractors and material suppliers filing liens against the property to obtain compensation after the contractor defaults

Question 23

CM @ A construction manager responsibilities

Answer 23

• Constructability
	• Cost estimating
	• Project schedule
	• Managing construction contracts
	• Material purchase
	• 3rd party adviser
Acting contractor or agent

Question 24

CM @ A Architect responsibilities SD & DD

Answer 24

• Similar to design bid build except:
• Cm develops cost estimates not arch
• Architect is in charge of schematic design and project schedule - both get reviewed by owner and cm
Owner and cm may suggest alt materials through dd

Question 25

CM @ A Responsibilities CD BN & CA

Answer 25

• Arch prepares specs and cm adjusts cost to reflect
• If cm cost is greater than budget owner must decide to
○ Increase budget
○ Revise project
○ Other
• CD phase similar to design bid build
• If project is negotiated arch assists owner and cm helping with prepping and negotiating
• Construction procedes as type design bid build
• Arch and cm provide CA as defined by a232
No GMP set by cm … cost is defined by bidding or negotiation

Question 26

CM @ C Contracts

Answer 26

• B133

A201

Question 27

CM @ C arch responsibilities pre design - DD

Answer 27

• Arch must work with cm during design phases as CM develops cost and schedule and helps with constructability
• Arch does not do cost estimating
• Arch gives cm schedule of services to include in project schedule
• Arch prepares SD docs and reviews them with owner and cm to use for cost
• Arch must consider owner and cm alt materials and systems
• If cm cost is greater than budget owner must decide to (same as CM @ A)
○ Increase budget
○ Revise project
Other

Question 28

CM @ C basis of payment

Answer 28

• Cot of work plus fee with or without GMP or control estimate for owners review
○ Review may be any time during design phase
○ Arch assists owner in reviewing cm’s cost
Arch is not responsible for noticing errors and omissions but if found CM should be notified promptly

Question 29

DB Contracts

Answer 29

• Architect serves as consultant to the design builder

B143

Question 30

DB Architects responsibilities

Answer 30

• Db, arch and owner select services from a list that the arch will provide
From predesign to CA

Question 31

If proposed cost of work exceeds budget for a design build

Answer 31

• DB may increase budget for architects portion
• DB may rebid/negotiate
• DB may terminate agreement with arch
DB may revise scope/quality

Question 32

IPD arch responsibilities are defined by 3 different approaches

Answer 32

• Transitional forms
• Multi party agreements
• Single purpose entity
Arch roles during preconstruction are limited for all 3 (agency review and buyout)

Question 33

Agency review

Answer 33

• Standard buidling code check by AHJ and any other permitting agencies
• IPD encourages early involvement of permitting agencies
○ BIM is helpful to streamline processes and sharing date
Arch is limited to working with reps to ensure code compliance and issues with BIM

Question 34

Buyout

Answer 34

• Process of selecting suppliers and finalizing prices from any remaining subcontractors and vendors that were not part of the IPD process
• No major bidding or negotiation because main contractors have already been selected and price their own portions of work
• Arch may be required to answer any questions form the remaining bidders and ensure design intent
Owner and contractor are generally responsible for finalizing remaining bidding efforts

Question 35

IPD transitional forms

Answer 35

• B195

A295

Question 36

Private selection or public value based selection

Answer 36

• Architect helps select contractor
	• Owner can use a305 to gather info from potential contractors  - contractors qualifications statement
	• Factors to consider
		○ Experience
		○ References
		○ Sufficient personnel 
		○ Financial qualifications
		○ Bonding capacity
		○ Insurance
		○ History 
		○ Knowledge of construction methods
Special licensing

Question 37

Public project with design bid build

Answer 37

Contractor is based solely on lowest bid

Question 38

Cost control for design bid build

Answer 38

• Architect has limited ability to adjust cost
• Cost is only an estimate through CDs
Arch cannot guarantee final cost

Question 39

Variables that effect final bid

Answer 39

• Bidding in the market place
○ Sub bids, materials and labor, equipment costs, indirect/overhead/profit
○ Construction market can vary too
○ May want to accelerate or delay portions of project based on state of economy
• Effects of documents on bid
○ Unclear work may cause cxr to add extra money for unknowns
○ BIM and a clear set makes a cxr more confident in bidding
• Alternates
○ Dox may as cxr to supply prices for variations / alternates in materials or quality
○ Alts should not be manipulated to favor one bidder over the other
○ Add alts vs deduct alts
• Unit prices
○ Set costs based on quantity
○ Listed in bid to provide basis for determining cost of changes
• Allowances
○ Set amount of money estimated by the architect to cover materials or equipment when it can not be determined precicely
○ All bidders use same amount in bids
○ Cxr adds amount for unloading handling and installing as well as for overhead and profit
• Value engineering
○ Add service (B204)
Best used earlier in design phase

Question 40

Arch responsibilities for cost control in CM project delivery

Answer 40

• Architect does not have responsibilty for cost estimating
• B133
• Arch works with cm to meet project budget and considers substitutions
• Arch provides clarifications prior to owners acceptance of gmp
Arch assists owner in reviewing gmp or control estimate

Question 41

Cost control in design build project deliveries

Answer 41

• Based on scope of services defined in b143
• May not have to do any thing, may have to evaluate budget for cost of work for architects portion
• May need to assist in bidding
• Arch must align with design builders responsibility to owner
May be paid through stipulated sum, cost of work plus fee with or without gmp

Question 42

Cost control in IPD

Answer 42

• Arch has little ability to adjust project cost during preconstruction
• Adjustments by arch are usually unnecessary bc cxr input is available during design development
Arch will implement changes to CDs if gmp is exceeded

Question 43

CM @ A Contracts

Answer 43

• B132 defines architects responsibilities
• A132 for owner contractor
○ May have one or multiple prime contractors
A232 general conditions