Written Questions Flashcards
Explain Adenda in construction bidding process.
• An addenda is a in the documents made during the bidding phase, before contract award (precisely: before the bid submission)
• Bidders often identify inconsistencies that must be corrected
• Bid documents may also be released prior to design completion such that the addenda complete
the remaining design.
• Acknowledgement of all addenda releases occurs on the bid form
What is a Public Private Partnership (PPP)? Discuss the pros and cons of Public Private Partnerships for the owners (or public).
Public–private partnership (PPP) describes a project that is funded and operated through a partnership of government and a private sector company. The private sector does the work and then transfers it to the government. PPP approach is getting more popular with governments because it delivers services more efficiently and at a lower cost than traditional methods.
PROS: faster completion, higher profit, more resources
CONS: double taxed, profits are shared
What is the purpose of Kick-off meeting in pre-construction stage? What are the outputs of this meeting?
• To review roles, responsibilities, procedures (particularly safety procedures) and contractual obligations with the contractor
• To review contract administration requirements and the regulatory requirements
• To build a constructive working relationships under Partnering programs
• Review General Conditions
• Check bonding and insurance compliance if applicable.
Outputs:
• Sets up the ground rules for contractors and subcontractors
• Outlines processes that will be followed
• Calls attention to critical project elements
• Ensures all the necessary permits are in place.
Explain the differences between corporations and limited partnerships? What are the key advantages and disadvantages of a corporation?
Corporation:
• Corporations are legal entities created by binding individuals into one group under a corporate name
• The corporation is owned by its stockholders, who may reside inside or outside the company • The corporation’s business is controlled by a board of directors which is elected by the
stockholders Limited Partnership:
• No legal entity – controlled by the general partner and limited partners
• A co-owner’s liabilities and profits are limited and are equal to the amount of capital and
property invested in the company
(6 Marks for discussing at least 3 differences)
Advantages of a corporation
• Limited owner liability
• Extended financial resources
• Uninterrupted life of the company
Disadvantages of a corporation
• Costly to start-up
• Double taxation of the company’s profit at both the federal and state/provincial level
• Strict government regulations
• May be bureaucratic
• Management may not carry the same incentive for success as other forms of business
ownership
Briefly explain the key phases in project delivery system.
The main six phases are: – Planning – Definition – Implementation – Commissioning – Operation – Evaluation
What is Bidder Prequalification? What are the benefits of Bidder Prequalification?
To assess the capability of potential tenderers to perform the requirements of a forthcoming contract and is carried out before the commencement of negotiation or bidding process.
Benefits:
• Less number of tender documents for review
• Better assurance of quality and technical capabilities of the tenderers
• Better trust among the owner and contractors
• Assists in selecting specialized contractors
• Better communication process during the bidding process due to less number of contractors and
know people.
What are the key ingredients (needs) of a legal (enforceable) contract? Briefly explain.
– Offer: a proposal from one party to the other (offeror to an offeree), which contains essential terms of the proposed contract.
– Acceptance: Unequivocal (Clear/undeniable) agreement to an offer.
– Consideration: Something of value given or promised by each party to the contract.
– Capacity: legally having the ability to enter in to a contract (not a minor, suitable mental
capacity, not bankrupt, not drunk or with the influence of drugs, terrorists of “enemies of
states”)
– Rightful purpose: The contract is for legally acceptable purpose.
What are your options, as the Owner, if the lowest tender price is too high? What can be the possible causes of this situation?
Options:
• Acceptance of the original price
• Acceptance of a reduced price
• Unilateral reduction by the lowest bidder or
• Negotiations on minor changes in scope
• Re-inviting THREE low bidders : When unable to secure a satisfactory reduction in price from the low
bidder in relation to minor changes in scope
• Re-invite all bidders : When changes in scope are substantial without changing the nature of the work
Causes:
• Errors in owners bid estimates
• Scope misunderstandings in bid documents
• Unforeseen risks/challenges (of the project) by the owner
• Sudden price escalations in the market
• Owner’s misunderstanding about the market conditions
What is meant by “alternates” in construction bidding process? During what of the bidding process are alternates possible? Are alternates beneficial to the owners? Why?
An alternate is a request for a price for substituting one material for another, for adding to the scope of work, or for deducting from the scope. Alternates are possible after the Bid Offer) until Bid Acceptance. Yes, Alternates are generally beneficial for the owners. Owners may get innovative, cost-effective, and
environmentally friendly solutions (alternatives) with the bid documents.
What are the available labor options in Canada? Describe pros and cons of each option to the workers.
Unionized and merit.
Pros and cons?
What are the main construction project delivery methods? Briefly explain.
Design/Bid/Build
Design/Build
Construction Management
What is the purpose of bonds in construction business? Describe three typical bonding types in construction.
Purpose: an agreement made between three parties (Contractor, Bonding Company, Owner) to guarantee satisfactory completion of a project by a contractor.
3 types:
Labour bond, Bid bond, Performance bond
