Procurement Procedures and Documents

Question 1

Purpose of prequalification of bidders

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 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.

Question 3

The two primary ways to notify prospective bidders are

Answer 3

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

Question 4

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

Answer 4

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

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 ample opportunity to study the document and modify their proposals accordingly

Question 6

Pre-bid conference

Answer 6

• 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

Question 7

After bids have been opened, a decision of award 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 construction, the owner has one of four options:

Answer 8

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

Question 9

Bidding documents usually include the following:

Answer 9

• 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

Question 10

AIA document 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 understood all documents

Question 12

Instructions to bid usually contain:

Answer 12

• Bidder’s representations
• Bidding documents

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 principal items proposed for the project
• 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 bond

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 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

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 obtain in addition to a performance 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
• 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

Question 19

Unit prices:

Answer 19

• 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

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

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

Answer 21

Recommened qualified contractors

Question 22

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

Answer 22

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

Question 23

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

Answer 23

B. Notification of future addenda

Question 24

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 24

B. The bidding climate

Question 25

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

Answer 25

D. Clarify responsibilities and operating procedures

Question 26

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 26

A. Bid Bond E. Certified check

Question 27

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

Answer 27

A. Cost-plus-fee

Question 28

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

Answer 28

A, D, and E

Question 29

Initial Decision Maker (IDM):

Answer 29

* 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.

Question 30

Exceptional circumstances which do not require a decision by the IDM

Answer 30

* Hazardous materials * Emergencies * Losses covered by insurance

Question 31

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 31

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

Question 32

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 32

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

Question 33

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

Answer 33

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 34

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

Answer 34

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.

Question 35

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

Answer 35

B. Unit prices Price based on cost per unit of measurement

Question 36

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 36

B. Addendum

Question 37

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

Answer 37

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

Question 38

Open bidding

Answer 38

* 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 39

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

Answer 39

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

Question 40

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

Answer 40

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 41

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

Answer 41

Instructions to bidders

Question 42

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:

Answer 42

An allowance

Question 43

The final responsibility for awarding a construction contract rests with the: A. Architect B. Construction manager C. Owner D. Owner's legal counsel

Answer 43

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

Question 44

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 44

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

Question 45

What happens duing bid opening?

Answer 45

* 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

Question 46

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

Answer 46

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

Question 47

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

Answer 47

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

Question 48

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:

Answer 48

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

Question 49

Low bidder is determined by:

Answer 49

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

Question 50

The low bidder is determined by:

Answer 50

The base bid plus any accepted alternates

Question 51

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

Answer 51

A, B,C, and F

Question 52

An Advertisement to Bid includes the following information:

Answer 52

* 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

Question 53

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

Answer 53

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