SPECIFICATIONS Flashcards
A type of contract with which the design firm invoices on a cost basis up to a stipulated maximum dollar amount that cannot be exceeded.
Guaranteed Maximum Price (GMP)
A unit price bid that accurately reflects the actual anticipated price of each item of work to be performed.
Balanced bid
A surety instrument that guarantees to the owner that the bearer, if awarded the contract, will enter into a binding contract and provide all required bonds.
Bid Bond
A specification that is expressly restrictive in stating that only one or two products will satisfy the quality requirements, or is implied when performance is so narrowly prescribed that only one or two products will satisfy the requirement.
Closed Specification
A bid that is not prepared in earnest, but is presented to appear to be a serious bid. Such bids are usually generated through collaborative efforts with another bidder who does submit a serious bid.
Complimentary Bid
AKA Boilerplate: outlines the roles of the parties to a construction agreement and provide guidance concerning procedures to follow under varying circumstances.
General Conditions
A common procedure in which the owner of a project contracts with a single firm, often called a prime contractor, for its construction. This firm may contract with speciality contractors for portions of the work
General Contract Method
Guidelines or rules enumerated for bidders on a project concerning proper procedures for bid submittal and relevant project information
Instructions to Bidders
A means of notifying the contractor about the decision to award the contract and of specifying when the contract time will start.
Notice to proceed
An open or nonrestrictive specification in which a wide variety (three or more) of products are considered suitable.
Open specification
A surety instrument in which the faithful performance of a contractor is guaranteed up to the face value of the bond.
Performance bond
A descriptive requirement that states the results or the performance of the finished product rather than the specific methods and means used to construct the product.
Performance specification
A meeting between the owner, the general contractor, and the major subcontractors that takes place after the contract is awarded but before construction begins. This conference addresses various matters deemed to be of importance to the project.
Preconstruction conference
A closed specification that names a project made by a particular manufacturer.
Proprietary specification
A performance specification that defines the acceptable product in terms of its ability to satisfy a standard developed by one of several standards organizations.
Reference specification
A bid that conforms to the standards outlined in the instruction to bidders. Only such bids can be considered on public works projects to assure all bidders of fair and equal treatment.
Regular bid
A compilation of general conditions, technical specifications, and other requirements that an agency uses on numerous construction projects. Such documents are prepared by state departments of transportation and many major municipalities.
Standard Specifications
A document that provides the qualitative requirements for a project in terms of materials, equipment, work performed, and so forth.
Technical Specifications
A unit price bind in which the pricing of the various items of work does not reflect the actual anticipated costs, but redistributes those costs to serve a specific objective of the bidder.
Unbalanced Bid
A contract in which payment is based on a contractor’s quoted price per unit of work performed and the owner’s measurement of the total number of such units installed.
Unit Price Contract
A contract in which the contractor is reimbursed for specified incurred costs, with an additional allowance provided for overhead and profit
Cost-Plus Contract