Bidding Procedures & Documents

Question 1

The purpose of prequalification of bidders is …

Answer 1

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

Question 2

Prequalification of contractors is based on…

Answer 2

…information submitted by contractos concerning their financial qualifications, personnel, experience, references, size bonding capability, and any special qualities that make them partcularly suited for the project under constructions

Question 3

The two primary ways to notify proespective bidders…

Answer 3

1) advertising in newspapers or trade journals
2) invitation to bid

Question 4

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

Answer 4

• the fact that 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
• the 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 info, such as owner’s right to waive irregularities of bidding process or to accept bids other than lowest

Question 5

addendum

Answer 5

• 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 ampe opportunity to study the document and modify their proposals accordingly

Question 6

pre-bid conference

Answer 6

• meeting with archtiect, owner, and bidders during which bidders can ask questions and the architect and owner can emphasize particularly impostant conditions of the project
• copy of notes of conference should be sent to all bidders, whether or not they were in attandance

Question 7

After bids have been opened, a decision of awade is typically made after…

Answer 7

…10 days

Question 8

if all the bids exceed the project budget and the Owner-Architect Agreement fixes a limit on constriction, the owner has one of four options…

Answer 8

1) to rebid (or renegotiate if a negotiated contract)
2) to authorize an increase in the construction cost and proceed with the project
3) to work with the architect in revising the scope of the project to reduce construction cost
4) to abandon the project

Question 9

bidding documents usually include the following…

Answer 9

• advertisement to bid
• instruction to bidders
• supplementary instructions to bidders (if any)
• bid forms
• bid security information
• performance bond if required
• labor and material payment bond, if required

Question 10

which AIA document is often used as instruction to bidders?

Answer 10

AIA Document A701

Question 11

bidder’s representations

Answer 11

• included in instructions to bid
• bidder represents that he/she has read and understand all documents

Question 12

instructions to bid usually contain…

Answer 12

• bidder’s representations
• bidding docuements

Question 13

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

Answer 13

• 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 princiapl items proposed for the project
• the names of the persons or companies proposed to perform major portions of the work

Question 14

Bid security

Answer 14

• 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

Question 15

If the successful bidder does not enter into an agreement…

Answer 15

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

Question 16

performance bind

Answer 16

• 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 contracto 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

Question 17

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

Answer 17

-labor and material bonds

Question 18

advantages of alternates in bids?

Answer 18

• allow flexibility in modifying the cost of the project when the bids are in by varying the quantity or quality of the project
• allow 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

Question 19

unit prices

Answer 19

• set costs for certain portions of work based on individual quantiies
• 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

Question 20

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

Answer 20

public

Question 21

Which of the following project delivery methods always requires preparation of several individual bid-document packages?

Answer 21

fast track

Question 22

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

Answer 22

recommened qualified contractors

Question 23

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

Answer 23

a) has the right to waive irregularities and accept the bid

Question 24

. Which of the following is an appropriate agenda item for the prebid conference?

a) Occupancy-permit procedures
b) Notification of future addenda
c) Pre-commissioning procedures
d) Status of change orders

Answer 24

b) Notification of future addenda

Question 25

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

Answer 25

b) The bidding climate

Question 26

A preconstruction 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

Answer 26

d) clarify responsibilities and operating procedures

Question 27

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

Answer 27

A. Bid Bond E. Certified check

Question 28

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? o Cost-plus-fee o Cost-plus-fee with a guaranteed maximum price o Stipulated sum o Unit price

Answer 28

Cost-plus-fee

Question 29

for a project using AIA Documents A201, a claim concerning which of the following would NOT be referred to the initial decision maker? (choose 3) a. the discovery of hazardous materials on the project site b. a request for additional compensation due to a discrepancy in the contract documents c. a request for additional time due to poor weather conditions d. an emergency that endangers workers on the jobsite e. a loss covered by insurance f. the termination of the contract for cause

Answer 29

ADE

Question 30

initial decision maker (IDM)

Answer 30

- 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 third party is not names in the agreement, by default, the archtiect will fulfill the duties of this role

Question 31

Exceptional circumstances which do not require a decision by the IDM

Answer 31

- hazardous materials - emergencies - losses covered by insurance

Question 32

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

Answer 32

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 additiona or deletions needed - sent to all bidders at least 4 days prior to the bid date - usually asks bidders to acknowledge receipt of addenda

Question 33

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

Answer 33

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 wrok 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 - architect has the option of rejecting the application or cerifying a lesser amount - does not mean the architect has inspected the work

Question 34

according to AIA document A701, Instructions to Bidders, bids must be submitted on a. standard AIA bid forms b. the contractors standard bid form c. forms provided with the bidding documents d. forms provided by the owner

Answer 34

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

Question 35

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

Answer 35

10 days - no subs 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 subs are approved, architect must issue an addendum for the sub approval no later than four days prior to the date of receipt of bids.

Question 36

Bid documents for an elementary school indicate an area of exterior concrete paving with an indtermediate 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

Answer 36

b. unit prices - price based on cost per unit of measurement

Question 37

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

Answer 37

b. addendum

Question 38

which of the following may be part of the bidding documents a. specs b. invitation to bid c. list of approved subcontractors d. owner-contractor agreement e. performance bond

Answer 38

ABCDE - all items listed can be included in bid docs - 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

Question 39

open bidding

Answer 39

- 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

Question 40

a performance bond a. ensures that subcontractors complete their work b. guarantees that the contracto 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

Answer 40

d. protects the owner having a third party responsible for completing the work if the contractor does not

Question 41

which of the folowwing variable has the greatest impact on a bid? a. the contractor's profit margin b. the influences of the construction marketplace c. labor and materials d. subcontractor bids

Answer 41

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

Question 42

procedures a bidder must follow to propose a substitution will be found in the...

Answer 42

...instructions to bidders

Question 43

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

Answer 43

...an allowance

Question 44

the final responsibility for awarding a construction contract rests with the a. architect b. construction manager c. owner d. owner's legal counsel

Answer 44

c. owner - architect is involved in decision making process, but only assists and gives advice

Question 45

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

Answer 45

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

Question 46

what happens duing bid opening

Answer 46

the architect or designated representative will open the bids, read tem aloud, and record in the bid log the base bid amounts, bids for proposed alternates, confirmation of receipt of addenda, and whether required suporting documentation is included with the bid (such as bid bond) -athitect shouls not announce the apparent low bidder at the bid opening

Question 47

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

Answer 47

c. both the architect's and consultant's fees will increase - sustainable design often requires the involvement of additional consulting engineers with appropriate espertise such as sotrmwater consultants, landscape designers, energy modeling expert, commissioning agents, LEED consultants, and so on. - spficying becomes for complex for architect in that he /she has to specify sustainable materials; greater amount of research and documentation

Question 48

Methods emplyed by 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

Answer 48

d. quantity and cost method - quantity and cost method includes an item by item accounting of each product or material used and are typically outside the scope of architectural services

Question 49

AIA Instrcutions 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...

Answer 49

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

Question 50

## Footnote Low bidder is determined by:

Answer 50

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

Question 51

The low bidder is determined by:

Answer 51

the base bid plus any accepted alternates

Question 52

Which of these should be included in an advertisement to bid? a. the name and address of the architect b. the date, time, and location of the pre-bid conference c. the amount of the deposit required to obtain copies of the bidding documents d. the names of acceptable subcontractors e. bid forms f. the date, time, and location at which bids are due

Answer 52

ABCF

Question 53

An advertisement to bid includes the following information:

Answer 53

- a name, location, and description of the project - the 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) - the date time, and location of the pre-bid schedule - the type and amount of bid bond required - the date and time of the bid opening and whether or not the bids will be read pubicly - any other information that the owner or the owner's attorney feels should be included

Question 54

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

Answer 54

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 aequate funding for the project from lenders or investors