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CeeCeeEss Study - In Process > Procurement Procedures and Documents > Flashcards

Procurement Procedures and Documents Flashcards

1
Q

Purpose of prequalification of bidders

A

To select only those contractors who meet certain standards of reliabilty, experience, financial stability, and performance

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2
Q

Prequalification of contractors is based on

A

Information submitted by contractors concerning their financial qualifications, personnel, experience, references, size bonding capability, and any special qualities that make them particularly suited for the project under construction.

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3
Q

The two primary ways to notify prospective bidders are

A
  1. Advertising in newspapers or trade journals
  2. Invitation to bid
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4
Q

With an advertisement for bids, the following information is published in one or more newspapers

A

A call for bids is being made

  • Project name and location
  • Name and address of the owner and archtiect
  • Brief description of the project, including building type, size, principal construction materials and systems, and other pertinent info
  • Date, time, and location bids are due
  • How and where bidding documents can be obtained, and deposit if required
  • Location where bid documents may be viewed
  • Type and amount of bid bonds required
  • Procedure for submitting bids
  • Whether or not bids will be open publicly
  • Other information, such as the owner’s right to waive irregularities of the bidding process or to accept bids other than the lowest
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5
Q

Addendum

A
  • A written or graphic document issued by the architect prior to the execution of the contract that modifies or interprets the bidding documents by addition, deletion, clarification, or correction
  • When an addendum is issued, it is sent to all registered bidders not later than four or five days before receipt of bids to give all bidders ample opportunity to study the document and modify their proposals accordingly
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6
Q

Pre-bid conference

A
  • Meeting with the archtiect, owner, and bidders during which bidders can ask questions and the architect and owner can emphasize particularly important conditions of the project
  • Copy of notes of conference should be sent to all bidders, whether or not they were in attendance
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7
Q

After bids have been opened, a decision of award is typically made after:

A

10 days

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8
Q

If all the bids exceed the project budget and the Owner-Architect Agreement fixes a limit on construction, the owner has one of four options:

A

1) Rebid (or renegotiate if a negotiated contract)
2) Authorize an increase in the construction cost and proceed with the project
3) Work with the architect in revising the scope of the project to reduce construction cost
4) Abandon the project

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9
Q

Bidding documents usually include the following:

A
  • Advertisement to bid
  • Instructions to bidders
  • Supplementary instructions to bidders (if any)
  • Bid forms
  • Bid security information
  • Performance bond, if required
  • Labor and material payment bond, if required
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10
Q

AIA document often used as instruction to bidders

A

AIA Document A701

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11
Q

Bidder’s representations

A
  • Included in instructions to bid
  • Bidder represents that he/she has read and understood all documents
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12
Q

Instructions to bid usually contain:

A
  • Bidder’s representations
  • Bidding documents
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13
Q

After the award of the bid, the contractor must submit what to the archtiect

A
  • A contractor’s qualification statement, AIA documents A305, unless it has already been submitted as part of the bidding process
  • Designation of the work to be performed with the contractor’s own forces
  • Names of the manufacturer’s, the products, and the supplier of the principal items proposed for the project
  • Names of the persons or companies proposed to perform major portions of the work
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14
Q

Bid security

A
  • Required to ensure that the successful bidder will enter into a contract with the owner
  • Form of the bid security may be a certified check, cashier’s check, or bid bond
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15
Q

If the successful bidder does not enter into an agreement:

A

The bid security may be retained to compensate for the difference between the low bid and the next lowest bidder

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16
Q

Performance bond

A
  • Statement by a surety company that obligates the surety company to complete construction on the project should the contractor default on his or her obligations
  • If contractor defaults, the surety company may hire another contractor or supply additional money to defaulting contractor to allow construction to proceed
  • Cost of performance bond is paid by owner and is usually included in amount of the construction price
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17
Q

Because a performance bond only ensures completion of the project, but does not guarantee payment for labor and materials, what must an owner obtain in addition to a performance bond?

A

Labor and material bonds

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18
Q

Advantages of alternates in bids:

A
  • Allow flexibility in modifying the cost of the project when the bids are in by varying the quantity or quality of the project
  • Allows owner to select certain options based on firm prices rather than on preliminary estimates
  • Add-alternates add to base bid
  • Deduct alternates reduce base bid
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19
Q

Unit prices:

A
  • Sets costs for certain portions of work based on individual quantities
  • When required, they are listed on the bid form and provide a basis for determining changes to the contract
  • Example: a square foot costs for asphalt paving may be requested if the full extent of paving is unknown when bids are received
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20
Q

Which of the following methods of bidding is required on most projects for which government funds are to be used?

A

Public

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21
Q

In developing a list of bidders for a private project, the architect’s role is to:

A

Recommened qualified contractors

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22
Q

After considering all bids, the owner favors a bid with irregularities. According to AIA A701, Instructions to Bidders, the owner

A. Has the right to waive irregularities and accept the bid

B. Has the right to extend the bidding period for corrections

C. Must informally request corrections from the bidder

D. Must only consider bids without irregularities

A

A. Has the right to waive irregularities and accept the bid

23
Q

Which of the following is an appropriate agenda item for the pre-bid conference?

A. Occupancy-permit procedures

B. Notification of future addenda

C. Pre-commissioning procedures

D. Status of change orders

A

B. Notification of future addenda

24
Q

Architect estimates of construction costs based on final documents should consider which of the following?
A. Known change order sums
B. The bidding climate

C. The amount of monthly certificate of payment

D. The amount of retainage

A

B. The bidding climate

25
Q

A pre-construction conference is generally held in order to:

A. Review bonds and affidavits
B. Determine whether a performance bond and a payment bond are required

C. Discuss changes to completed work
D. Clarify responsibilities and operating procedures

A

D. Clarify responsibilities and operating procedures

26
Q

Which of the following are considered security for a project? Check the two that apply.

A. Bid Bond

B. Payment Bond

C. Completion Bond

D. Performance Bond

E. Certified check

A

A. Bid Bond

E. Certified check

27
Q

Which of the following methods of contractor compensation would an owner be more likely to choose when the construction time is limited and the design criteria or construction cost is secondary to meeting the deadline for completion?
A. Cost-plus-fee
B. Cost-plus-fee with a guaranteed maximum price
C. Stipulated sum
D. Unit price

A

A. Cost-plus-fee

28
Q

For a project using AIA A201, a claim concerning which of the following would NOT be referred to the initial decision maker? (Choose 3)

A. Discovery of hazardous materials on the project site

B. Request for additional compensation due to a discrepancy in the contract documents

C. Request for additional time due to poor weather conditions

D. Emergency that endangers workers on the job site

E. Loss covered by insurance

F. Termination of the contract for cause

A

A, D, and E

29
Q

Initial Decision Maker (IDM):

A
  • Third party named in the agreement, who will serve as the first reviewer in the event of a project dispute
  • The agreement requires that the opinion of the IDM be solicited before proceeding with mediation or arbitration.
  • If a third party is not named in the agreement, by default, the archtiect will fulfill the duties of this role.
30
Q

Exceptional circumstances which do not require a decision by the IDM

A
  • Hazardous materials
  • Emergencies
  • Losses covered by insurance
31
Q

Addenda are issued:

A. Prior to receipt of bids

B. After receipt of bids but before work commences

C. After the award of the contract

D. During construction

A

A. Prior to receipt of bids

  • A written or graphic docuement, issued by the architect prior to submission of contractor’s bids that modifies or interprets the bidding documents
  • May be issued in response to errors discovered in the building documents, changes the client wants to make, questions from bidders, or additions or deletions needed
  • Sent to all bidders at least 4 days prior to the bid date
  • Usually asks bidders to acknowledge receipt of addenda
32
Q

An architect’s signature on a certificate of payment indicates that the architect has:

A. Inspected and accepted the work performed

B. Reviewed the invoices submitted to the contractor by subcontractors

C. Verified that the contractor is entitled to payment for work performed to date

D. Received payment for work performed to date

A

C. Verified that the contractor is entitled to payment for work performed to date

  • On receiving an application for payment from the contractor, the architect has 7 days to review the work performed and determine whether the level of quality of the work matches that defined by the contract documents
  • If both attribtues are present, the archtiect will issue a certificate of payment to the owner for the amount requested by the contractor
  • The architect has the option of rejecting the application or cerifying a lesser amount
  • Signature does not mean the architect has inspected the work
33
Q

According to AIA A701, Instructions to Bidders, bids must be submitted on:

A. Standard AIA bid forms

B. Contractors standard bid form

C. Forms provided with the bidding documents

D. Forms provided by the owner

A

C. Forms provided with the bidding documents

Forms may be tailored to the project, including a listing of alternates and unit prices, and by asking for acknowledgement of any addenda issued during the bid phase

34
Q

During the bidding, a contractor wants to propose a substitution of a material specified in the contract documents. According to AIA A701, Instructions to Bidders, the request for substitution must be received by the architect ___ days prior to the receipt of bids

A

10 days

  • No substitutions can be considered unless a written request for such approval has been received by the architect at least ten days prior to the date for receipt of bids
  • If substitutes are approved, the architect must issue an addendum for the substitute approval no later than four days prior to the date of the receipt of bids.
35
Q

Bid documents for an elementary school indicate an area of exterior concrete paving with an intermediate limit because the owner has not made a final decision concerning the amount of paved area required. In order to fairly compare bid prices for the paving, the architect may request on the bid form that the contractors include:

A. Individual quotes

B. Unit prices

C. Fixed prices

D. Contingencies

A

B. Unit prices

Price based on cost per unit of measurement

36
Q

Which of the following would be used to formally incorporate a substitution into the work prior to award of the contract?

A. Change order

B. Addendum

C. Alternate listing

D. Construction change directive

A

B. Addendum

37
Q

Which of the following may be part of the bidding documents:

A. Specifications

B. Invitation to bid

C. List of approved subcontractors

D. Owner-contractor agreement

E. Performance bond

A

A, B, C, D, and E

  • All items listed can be included in bid documents
  • List of approved subcontractors is used least frequently because limiting the general contractor’s ability to solicit a number of bids may increase the overall price
38
Q

Open bidding

A
  • Nearly anyone can bid, regardless of experience
  • Encourages a variety of contractors to participate
  • Can be difficult to evaluate qualified bidders
  • Cost and complexity of advertising and administering the bidding process may increase
39
Q

A performance bond:

A. Ensures that subcontractors complete their work

B. Guarantees that the contractor will finish on time

C. Covers any possible liens that may be filed on the building

D. Protects the owner having a third party responsible for completing the work if the contractor does not

A

D. Protects the owner having a third party responsible for completing the work if the contractor does not

40
Q

Which variable has the greatest impact on a bid?

A. Contractor’s profit margin

B. Influences of the construction marketplace

C. Labor and materials

D. Subcontractor bids

A

C. Labor and materials

  • Labor and materials, by far, the the biggest influence
  • Represent about 80% of cost
  • Labor and material cost influence the amount of subcontractor bids
41
Q

Procedures a bidder must follow to propose a substitution will be found in the:

A

Instructions to bidders

42
Q

When an owner wants to make sure some amount of money is included in the bid before the exact specification is for the item is known, the architect should use:

A

An allowance

43
Q

The final responsibility for awarding a construction contract rests with the:

A. Architect

B. Construction manager

C. Owner

D. Owner’s legal counsel

A

C. Owner

The architect is involved in decision making process, but only assists and gives advice

44
Q

Which of the following is the most appropriate way to announce bid results?

A. The archtiect should make a statement at the conclusion of the bid opening identifying the apparent low bidder

B. After evaluating all of the bids, the owner should make a decision of award and the architect should notify the bidders

C. The architect should call all of the bidders and give them the results

D. The owner should publish the bid results in the local newspaper

A

B. After evaluating all of the bids, the owner should make a decision of award and the architect should notify the bidders

45
Q

What happens duing bid opening?

A
  • The architect or designated representative will open the bids, read them aloud, and record in the bid log the base bid amounts, bids for proposed alternates, confirmation of receipt of addenda, and whether required supporting documentation is included with the bid (such as bid bond)
  • Architect should not announce the apparent low bidder at the bid opening
46
Q

The owners of a new office building have indicated that they wish to have their building LEED certified. What effect might this decision have on the cost of design services?

A. The architect’s fees will increase, but those of consultants will remain the same

b. The archtiect’s fees will remain the same, but those of consultants will increase
c. Both the architect’s and consultant’s fees will increase
d. There will be no change in the cost of design services

A

C. Both the architect’s and consultant’s fees will increase

  • Sustainable design often requires the involvement of additional consulting engineers with appropriate expertise such as stormwater consultants, landscape designers, energy modeling experts, commissioning agents, LEED consultants, and so on.
  • Specifying becomes complex for the architect in that he /she has to specify sustainable materials; greater amount of research and documentation
47
Q

Methods employed by the architect for estimating the cost of construction include all of the following except:

A. Area and volume estimates

B. Subsystem estimates

C. Cost per unit

D. Quantity and cost method

A

D. Quantity and cost method

Quantity and cost method includes an item by item accounting of each product or material used and is typically outside the scope of architectural services

48
Q

AIA Instruction to Bidders states that the owner may select any alternates in any order and that the contract award will be made on the basis of:

A

The combined cost determined by the base bid and the accepted alternates

49
Q

Low bidder is determined by:

A

The sum of the base bid + cost of additive alternates + credit of deductive alternates

50
Q

The low bidder is determined by:

A

The base bid plus any accepted alternates

51
Q

Which of these should be included in an advertisement to bid?

A. Name and address of the architect

B. Date, time, and location of the pre-bid conference

C. Amount of the deposit required to obtain copies of the bidding documents

D. Names of acceptable subcontractors

E. Bid forms

F. Date, time, and location at which bids are due

A

A, B,C, and F

52
Q

An Advertisement to Bid includes the following information:

A
  • Name, location, and description of the project
  • Name and address of the owner and architect
  • Instructions for obtaining a set of bidding documents and/or locations where bid documents may be viewed (plan rooms, architect’s office)
  • Date time and location of the pre-bid schedule
  • Type and amount of bid bond required
  • Date and time of the bid opening and whether or not the bids will be read publicly
  • Any other information that the owner or the owner’s attorney feels should be included
53
Q

An analysis of the financial feasibility of a potential project is called a

A

Pro forma

  • A pro forma is an analysis of the costs and revenues projected for a potential project and should be a part of the owner’s initial planning
  • Generally this analysis and documentation is required to secure adequate funding for the project from lenders or investors

CeeCeeEss Study - In Process (19 decks)

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