Lecture 11

Question 1

may be accepted by the
owner as long as they are accompanied
by the original priced bid.

Answer 1

Bid substitutions

Question 2

1. These substitutions may be the result of VE
   proposals or special contractor
   experience
2. If original priced bid is not included, may
   be considered a counter offer and
   automatically rejected.

Answer 2

Bid substitutions

Question 3

Total bid price is compared for ______.

Answer 3

lump slump bids

Question 4

Equivalent lump sum value is compared in case

of unit price bids (May be misleading in case ________ ).

Answer 4

of errors in quantity calculation

Question 5

_________ should be separately

presented through alternative offer.

Answer 5

Alternates or substitutions

Question 6

Use of alternates might cause problems

Especially for ______________

Answer 6

proprietary alternates

Question 7

______ next to a line item means no extra cost

for this item. (NC means No Cost)

Answer 7

A “dash”

Question 8

1.can be considered the
acceptance to the owner’s offer (RFP or IFB), or it
can be considered an offer from the contractor
to undertake the owner’s project.
2. May follow a prescribed format provided by the
owner, or be presented on the company’s
letterhead in case of absence of a specific
format.
3. Permits the owner to compare and evaluate
different submitted bids.
4. Providing a specific format simplifies the
comparison and evaluation process.

Answer 8

The Proposal

Question 9


1. Name and address of the owner.
2. Title and scope of the project.
3. Opening statement: showing bidders limit of services provided,
and responsibilities undertaken.
4. Bid amount: in words and figures.
5. Date of submittal and timeframe for validity of proposal.
6. Name and address of contractor: including authorized
representatives’ signatures.
7. Receipt of addenda: acknowledging receipt of any issued
addenda.
8. Alternate Bids: clearly separate from original bid.
9. Time of completion: Whether it is in calendar days or work days.
10. List of subcontractors and suppliers/manufacturers.
11. Unit prices: to assist in change order evaluation.

Answer 9

Elements of the proposal

Question 10

____________ are changes to the base bid.

Answer 10

alternates or substitutions

Question 11

1. is a change called for by the Owner
   through the bid documents.
2. Can be either additive or deductive.
3. Used to compare costs of different available solutions
   or substitutes, or when finances are not certain.
4. Should not be used to replace the lack of knowledge of the A/E about cost.
5. Should be used in moderation as it creates a wider
   variety for comparison.

Answer 11

Bid Alternates

Question 12

is a formal change initiated
by the Owner or his agent (The A/E) to the bid
(requirements, documents, conditions, scope,
etc.) during the bidding process
.

Answer 12

Addendum

Question 13

If the change is initiated after a contract has been signed it is called________________.

Answer 13

Contract Change or a change Order

Question 14

1. Correction of errors or discrepancies in specs. Errors in drawings are corrected through an updated revision of the drawings. All revisions should be conveyed to all bidders uniformly.
2. Making owner initiated changes.
3. Furnishing clarifications in response to questions raised by bidders. Same answers should be given to all bidders.
4. Additions, deletions, or modification of products to include “or equal”.
5. Changing previously stated requirements including due date, period of validity of bids, or other important conditions.

Answer 14

Reasons for Addenda

Question 15

Limit the amount and ____ of addenda

Answer 15

magnitude

Question 16

Issue ____ only when necessary and with ample time for bidders to properly evaluate them to incorporate their effect on time and cost.

Answer 16

addenda

Question 17

Issue addenda only in ______.

Answer 17

Written form

Question 18

Ensure and acknowledge _______ of all questions from bidders, and all addenda to bidders.

Answer 18

receipt

Question 19

1. Name of the project.
2. Addendum number (in case of several addenda).
3. Date of issuance.
4. Items affected by addendum, if any.
5. Provisions for receipt procedure (signing, faxing, etc.).
6. Name and address of issuing office (Owner or A/E).
7. Reason for issuing.
8. Any modification to bidding milestones (submittal, opening, validity, etc.)
9. Changes made through addendum.

Answer 19

Elements of the

Addendum

Question 20

Provisions having wide application over multiple projects are called ________.

Answer 20

“General Conditions of the Contract”.

Question 21

Their purpose is to spell out the contract conditions by defining roles, duties, responsibilities, and authorities of different parties involved in or affected by the contract.

Answer 21

Conditions of the contract

Question 22

Essential part of the agreement between owner and

successful bidder.

Answer 22

Conditions of the contract

Question 23

Conditions of the contract are usually bound with _____, and included by
reference in other bid/contract documents.

Answer 23

specifications

Question 24

Usually prepared by an attorney or legal professional.

Answer 24

Conditions of the contracts

Question 25

1. Many professional and industry associations (AIA,
   AGC, ACE, AASHTO) have prepared and published
   standard versions of proprietary general conditions.
2. These standard versions gain acceptance and
   perfection over time.
3. They are reviewed periodically to reflect any major
   changes in trends in the construction market.
4. They are prepared in consultation with legal
   personnel, and their interpretation by courts helps
   establish precedence for future cases.

Answer 25

Standard forms

Question 26

Best used in their original format, without retyping
or reformatting by the A/E.
They permit contractors and other users to work
with a familiar document, thus saving time and
reducing chances for misinterpretations.

Answer 26

Standard forms

Question 27

1. _____ Standard documents should be kept to a minimum to the general conditions to avoid any problems understanding and interpreting them.
2. Such changes should be included in the special
   (particular conditions).

Answer 27

Changing

Question 28

1. Definition of contract documents.
2. Duties and responsibilities of contract parties.
3. Duties and responsibilities of A/E (or CM if any)
4. Subcontractors.
5. Separate contracts.
6. Time aspects of the contract.
7. Payment method (Schedule, method of measurement, interim and
   final payments, etc.).
8. Insurance and bond requirements.
9. Mechanism for issuing changes to the works.
10. Dispute resolution method/s
11. Miscellaneous provisions

Answer 28

Content of General

Conditions

Question 29

1. Also known as
   Special conditions, supplemental
   conditions, or Particular conditions
   .
2. Cover provisions not covered in the general
   conditions, or override and modify the provisions
   in the general conditions.

Answer 29

Supplementary Conditions

Question 30

What are special conditions mainly used for?

Answer 30

1. Modify provisions within the general conditions.
2. Effect additions or deletions from general conditions.
3. Limit or delimit provisions in general conditions.

Question 31

It should be well understood that the contract
documents should be read and construed as
one entity, with its different elements explaining
and ___________ each other.

Answer 31

complementing

Question 32

1. The special conditions are considered part of the
   general conditions, which should be explicitly
   mentioned in both documents.
2. In case of conflict or contradiction, the ______ have a higher priority, and override
   the ___________.

Answer 32

special conditions, general conditions

Question 33

Determining the prevailing area wage to be

paid for different trades in case the project is wholly or partially funded through federal money.

Answer 33

Davis-Bacon Act:

Question 34

Requiring the bidders/contractors to use only
American-made goods or products. This may apply to all or part of the project, or at least for the elements having an equal manufactured in the US.

Answer 34

Buy America Act:

Question 35

Giving preference to local or in-state

contractors over out-of-state contractors. Same provisions might apply to subcontractors and suppliers/manufacturers.

Answer 35

State Preference Act:

Question 36

Through VEIC and VECP, encouraging contractors to submit their input on the design/construction methods and materials during the construction phase, with sharing in the money saved according to pre-set ratios
.

Answer 36

Value Engineering:

Question 37

1. Temporary Facilities:
   Sanitary facilities, enclosures, access roads,
   utilities, etc. (Contractor will usually pay for them.)
2. Shop Drawings:
   Number of copies, cycle of approval, liability and
   responsibility for accuracy and correctness, etc.
3. Plan of Operations:
   Coordination with owner, other contractors, etc.
4. Reporting of Cost Information:
   Special items requested by the owner.
5. Field Office:
   Provided by the contractor for the use of the owner,
   A/E, CM, etc.
6. Payment:
   Schedule of payments, retainage, retainage release,
   warranty period, etc.
7. Construction Schedule:
   Preparation, approval, updates and
   maintenance, etc.
8. Permits:
   Who will provide them, who will pay for them, etc.
9. Insurance:
   Usually contractor pays for it, unless otherwise stated.
10. Cleaning up: Including demobilization and process for handing-over to the owner upon completion or substantial completion.

Answer 37

Sample clauses