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Estimating Bidding and Project Award Cost Estimating Construction Documents The Bid Package Types of Contracts
THE BID PACKAGE The Bidding Process The Bidding Timeline Bidding Requirements TODAY’S CLASS
ALL BIDDERS RECEIVE  IDENTICAL  CONSIDERATION  AND BID ON AN  IDENTICAL  BASIS. BASIC PRINCIPLE:
The Bidding Process <ul><li>Bidding is the process of securing official, legally enforceable costs or prices from general ...
The Bidding Process <ul><li>Before bids can be submitted, prospective bidders must be made aware of the project and suffic...
The Bidding Process  <ul><li>The bid price is comprised from the following: </li></ul><ul><ul><li>Quantity-takeoff  </li><...
The Bidding Timeline  (in a NUT SHELL) <ul><li>The project is but out for solicitation by architect on owner’s behalf </li...
The Bidding Timeline  (in a NUT SHELL) <ul><li>Addenda may be issued to clarify or correct issues brought forward by contr...
The Bidding Timeline  (in a NUT SHELL) <ul><li>Then Bid is sent to Owner  </li></ul><ul><ul><li>Could be open or closed bi...
THE BIDDING REQUIREMENTS Invitation to Bid Instructions to Bidders Information Available to Bidders Bid Forms and Attachme...
Bidding Requirements  INVITATION TO BID <ul><li>Intention to attract qualified bidders to furnish a price </li></ul><ul><l...
Bidding Requirements  INVITATION TO BID <ul><li>Should always be in writing containing the following information: </li></u...
Bidding Requirements  INVITATION TO BID <ul><li>Date of Issuance of the bidding documents </li></ul><ul><li>Brief Descript...
Bidding Requirements  INVITATION TO BID <ul><li>Bid Date and Time due (also called the  Bid Opening ) </li></ul><ul><ul><l...
Bidding Requirements  INVITATION TO BID <ul><li>Examination and procurement of bid documents </li></ul><ul><ul><li>Locatio...
Bidding Requirements  INVITATION TO BID <ul><li>Owner’s Right to Reject Bids </li></ul><ul><ul><li>Owner reserves right to...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Requirements with which bidders must comply before and during submis...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </l...
Bidding Requirements  BID FORM <ul><li>Prepared document that the bidder will submit to the owner </li></ul><ul><li>Contai...
Bidding Requirements  BID FORM <ul><li>Bid form should be prepared to ensure an uniform arrangement that facilitates compa...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Project Identification </li></ul></...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Entity Submitting Bid </li></ul></u...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Acknowledgements  </li></ul></ul><u...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Acknowledgements  </li></ul></ul><u...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Amount of Time for the Bids to be H...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Identification of Addenda </li></ul...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Alternates </li></ul></ul><ul><ul><...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Allowances </li></ul></ul><ul><ul><...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Completion Date </li></ul></ul><ul>...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Attachments </li></ul></ul><ul><ul>...
Bidding Requirements  BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Closing </li></ul></ul><ul><ul><ul>...
Bidding Requirements  INFORMATION AVAILABLE TO BIDDERS <ul><li>Bidder’s use in preparing bids </li></ul><ul><ul><li>But no...
Bidding Requirements  INFORMATION AVAILABLE TO BIDDERS <ul><li>Information is addressed in two documents </li></ul><ul><ul...
Bidding Requirements  INFORMATION AVAILABLE TO BIDDERS <ul><li>AIA Document A201 </li></ul><ul><ul><li>subparagraph 4.3.6 ...
Bidding Requirements  INFORMATION AVAILABLE TO BIDDERS <ul><li>EJCDC Document 1910-8 </li></ul><ul><ul><li>subparagraph 4....
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ACH 216 Lecture 04b (Bidding) Part 2

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Transcript of "ACH 216 Lecture 04b (Bidding) Part 2"

  1. 1. Estimating Bidding and Project Award Cost Estimating Construction Documents The Bid Package Types of Contracts
  2. 2. THE BID PACKAGE The Bidding Process The Bidding Timeline Bidding Requirements TODAY’S CLASS
  3. 3. ALL BIDDERS RECEIVE IDENTICAL CONSIDERATION AND BID ON AN IDENTICAL BASIS. BASIC PRINCIPLE:
  4. 4. The Bidding Process <ul><li>Bidding is the process of securing official, legally enforceable costs or prices from general contractors, sub-contractors and vendors/suppliers. </li></ul><ul><li>Competitive bidding is a method of determining the least cost for accomplishing work defined by the contract documents. </li></ul><ul><li>Bids are prepared confidentially by each bidder (general contractor) and are sealed and submitted to the owner to be examined and compared in competition with one another. </li></ul>
  5. 5. The Bidding Process <ul><li>Before bids can be submitted, prospective bidders must be made aware of the project and sufficient data must be furnished for them to determine the requirements for the project. </li></ul><ul><ul><li>Specific information needed: </li></ul></ul><ul><ul><ul><li>Compliance with required bidding procedures </li></ul></ul></ul><ul><ul><ul><li>Understanding of bidding and awarding requirements </li></ul></ul></ul><ul><ul><ul><li>Following the intent of the construction documents </li></ul></ul></ul><ul><ul><ul><li>Submitting bids that will not be disqualified for technicalities </li></ul></ul></ul><ul><ul><ul><li>Understanding conditions that apply after the bid submittal and prior to contract award. </li></ul></ul></ul>
  6. 6. The Bidding Process <ul><li>The bid price is comprised from the following: </li></ul><ul><ul><li>Quantity-takeoff </li></ul></ul><ul><ul><li>Unit pricing </li></ul></ul><ul><ul><li>Labor to perform work </li></ul></ul><ul><ul><li>Sales tax </li></ul></ul><ul><ul><li>Overhead & profit </li></ul></ul><ul><ul><li>Commissions (if applicable) </li></ul></ul>
  7. 7. The Bidding Timeline (in a NUT SHELL) <ul><li>The project is but out for solicitation by architect on owner’s behalf </li></ul><ul><ul><li>Invitation to Bid </li></ul></ul><ul><li>Contractors obtain Construction Documents </li></ul><ul><ul><li>drawings, specs and project manual </li></ul></ul><ul><li>Contractors will: </li></ul><ul><ul><li>Review docs and familiarize themselves with project </li></ul></ul><ul><ul><ul><li>Send RFI’s (Request for Information) on unclear items </li></ul></ul></ul><ul><ul><li>take-off quantities of material from drawings </li></ul></ul><ul><ul><li>refer to spec for material/product info and compliance </li></ul></ul><ul><ul><li>gather unit prices from suppliers </li></ul></ul><ul><ul><li>solicit to subcontractors for bids on portions of work </li></ul></ul>
  8. 8. The Bidding Timeline (in a NUT SHELL) <ul><li>Addenda may be issued to clarify or correct issues brought forward by contractor (or A/E, Owner) </li></ul><ul><li>Once all estimating is completed and sub-c bids are gathered, information is put into a form </li></ul><ul><ul><li>Form is broken down into CSI MasterFormat 16-Division format </li></ul></ul><ul><ul><ul><li>May be further broken down by section </li></ul></ul></ul><ul><ul><ul><li>Includes quantities, unit prices and labor costs or </li></ul></ul></ul><ul><ul><ul><li>lump sum bids from subcontractors </li></ul></ul></ul><ul><ul><li>Then sum of all Division costs are calculated </li></ul></ul><ul><ul><li>Additional costs are included (OH & P, sales tax) </li></ul></ul><ul><ul><li>RESULT is Total Bid to Owner </li></ul></ul>
  9. 9. The Bidding Timeline (in a NUT SHELL) <ul><li>Then Bid is sent to Owner </li></ul><ul><ul><li>Could be open or closed bid </li></ul></ul><ul><li>Owner will review bids with architect </li></ul><ul><li>Owner will select bidder and send “Letter of Intent” </li></ul><ul><ul><li>Modifications may be issued to further clarify issues </li></ul></ul><ul><ul><ul><li>Results in a change to the contract price </li></ul></ul></ul><ul><li>Owner and Contractor review contract and sign agreement </li></ul><ul><li>CONSTRUCTION COMMENCES!! </li></ul>
  10. 10. THE BIDDING REQUIREMENTS Invitation to Bid Instructions to Bidders Information Available to Bidders Bid Forms and Attachments Bid Security Forms
  11. 11. Bidding Requirements INVITATION TO BID <ul><li>Intention to attract qualified bidders to furnish a price </li></ul><ul><li>Help prospective bidders decide whether to bid on project </li></ul><ul><li>Should be brief, simple and to the point </li></ul><ul><ul><li>Should not contain detailed requirements or instructions </li></ul></ul><ul><ul><li>Should not contain irrelevant information </li></ul></ul>
  12. 12. Bidding Requirements INVITATION TO BID <ul><li>Should always be in writing containing the following information: </li></ul><ul><ul><li>Project Identification </li></ul></ul><ul><ul><ul><li>Project name </li></ul></ul></ul><ul><ul><ul><li>Site address </li></ul></ul></ul><ul><ul><ul><li>Project Number (if applicable) </li></ul></ul></ul><ul><ul><li>The INVITER (entity that is requesting bid, usually the owner or A/E) </li></ul></ul><ul><ul><ul><li>Company or Individual name </li></ul></ul></ul><ul><ul><ul><li>Address </li></ul></ul></ul><ul><ul><ul><li>Phone number </li></ul></ul></ul><ul><ul><ul><li>Fax number </li></ul></ul></ul><ul><ul><ul><li>Contact person </li></ul></ul></ul>
  13. 13. Bidding Requirements INVITATION TO BID <ul><li>Date of Issuance of the bidding documents </li></ul><ul><li>Brief Description of Work </li></ul><ul><ul><li>A brief listing of the scope of work can be included </li></ul></ul><ul><ul><ul><li>Project type and size </li></ul></ul></ul><ul><ul><ul><li>Major characteristics of construction </li></ul></ul></ul><ul><ul><li>Type of Bid (see section for explanation) </li></ul></ul><ul><ul><li>Time of Completion (if established) </li></ul></ul><ul><ul><ul><li>Number of days to execute project </li></ul></ul></ul><ul><li>Required date of substantial completion </li></ul>
  14. 14. Bidding Requirements INVITATION TO BID <ul><li>Bid Date and Time due (also called the Bid Opening ) </li></ul><ul><ul><li>Who will receive bids </li></ul></ul><ul><ul><li>When will bids be received </li></ul></ul><ul><ul><li>Where will bids be received </li></ul></ul><ul><ul><li>When & where they will be opened </li></ul></ul><ul><ul><li>Will the opening be public or private </li></ul></ul><ul><ul><ul><li>If the opening is private, state who may attend </li></ul></ul></ul><ul><ul><ul><li>Sometimes bidders are permitted to attend private openings that are closed to sub bidders and trade publication representatives </li></ul></ul></ul>
  15. 15. Bidding Requirements INVITATION TO BID <ul><li>Examination and procurement of bid documents </li></ul><ul><ul><li>Location of where bid documents can be examined </li></ul></ul><ul><ul><li>Can documents be obtained from GC or printer </li></ul></ul><ul><ul><ul><li>Give printing costs/charges </li></ul></ul></ul><ul><ul><ul><li>Deposit and refund information </li></ul></ul></ul><ul><li>Bidder’s Qualifications </li></ul><ul><ul><li>If required, state type of qualification </li></ul></ul><ul><li>Bid Security (if required) </li></ul><ul><ul><li>Is security percentage of bid or lump sum amount </li></ul></ul>
  16. 16. Bidding Requirements INVITATION TO BID <ul><li>Owner’s Right to Reject Bids </li></ul><ul><ul><li>Owner reserves right to waive irregularities and to reject bids </li></ul></ul><ul><li>Laws and Regulations </li></ul><ul><ul><li>Listing of applicable laws and regulations </li></ul></ul><ul><ul><ul><li>May cover nondiscrimination in employment and wage rates </li></ul></ul></ul><ul><ul><li>Not typically included on Invitations to sub-contractors </li></ul></ul>
  17. 17. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Requirements with which bidders must comply before and during submission of bids </li></ul><ul><li>Very detailed, specific information </li></ul><ul><ul><li>Description of conditions affecting award of contract </li></ul></ul><ul><ul><li>Standard publications by associations, local, state and federal agencies can be used </li></ul></ul><ul><ul><ul><li>i.e. AIA Document A701 </li></ul></ul></ul><ul><ul><ul><li>i.e. EJCDC Document 1910-8 </li></ul></ul></ul><ul><ul><ul><li>may need to be expanded to suit the specific needs of the project </li></ul></ul></ul>
  18. 18. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Availability of documents </li></ul></ul><ul><ul><ul><li>Whether documents will be issued to other people than prime bidders </li></ul></ul></ul><ul><ul><ul><li>Required deposit or costs </li></ul></ul></ul><ul><ul><ul><li>Responsibility of issued sets of documents </li></ul></ul></ul><ul><ul><ul><li>Requirements for returning of documents by bidders </li></ul></ul></ul><ul><ul><ul><ul><li>Time of return & refund of deposit </li></ul></ul></ul></ul>
  19. 19. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Examination of documents, site & local conditions </li></ul></ul><ul><ul><ul><li>Bidder is responsible for examining docs & site </li></ul></ul></ul><ul><ul><ul><li>Note limitations on examination time </li></ul></ul></ul><ul><ul><ul><li>Arrangements for examination of docs </li></ul></ul></ul>
  20. 20. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Interpretations During Bidding </li></ul></ul><ul><ul><ul><li>Describes how discrepancies and ambiguities in the docs will be resolved during bid period </li></ul></ul></ul><ul><ul><ul><ul><li>Contact name & info for clarifications & inquiries </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Manner in which such requests are made, including time limits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How replies will be made </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Replies will be issued as addenda </li></ul></ul></ul></ul></ul>
  21. 21. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Substitution of Products </li></ul></ul><ul><ul><ul><li>Listing more than one acceptable product, method or manufacturer </li></ul></ul></ul><ul><ul><ul><ul><li>Required in public work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stimulates competition </li></ul></ul></ul></ul><ul><ul><ul><li>A/E will state requirements and procedures under which substitutions will be considered </li></ul></ul></ul><ul><ul><ul><ul><li>Substitution requests will no longer be accepted after a certain date before the bid date </li></ul></ul></ul></ul>
  22. 22. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Type of Bid </li></ul></ul><ul><ul><ul><li>Lump Sum </li></ul></ul></ul><ul><ul><ul><ul><li>Stipulated amount for a described scope of work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Based on complete or partially complete construction documents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Usually requested on architectural type projects </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lump-sum bids are modified by using alternates, allowances or unit prices </li></ul></ul></ul></ul>
  23. 23. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Type of Bid </li></ul></ul><ul><ul><ul><li>Cost-Plus-Fee </li></ul></ul></ul><ul><ul><ul><ul><li>Cost of actual direct expense of construction work plus a fee for overhead and profit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Based on partially complete construction documents for a defined scope of work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Fee is usually fixed or percentage, includes </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Payroll costs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Material & equipment costs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Amounts paid to subcontractors and/or consultants </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Supplemental costs </li></ul></ul></ul></ul></ul>
  24. 24. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Type of Bid </li></ul></ul><ul><ul><ul><li>Guaranteed Maximum Price (GMP) </li></ul></ul></ul><ul><ul><ul><ul><li>Similar to cost-plus-fee except bidder has guaranteed a maximum price for project </li></ul></ul></ul></ul>
  25. 25. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Type of Bid </li></ul></ul><ul><ul><ul><li>Unit Price </li></ul></ul></ul><ul><ul><ul><ul><li>Estimated quantities are provided for various items and bidders quote a price for each </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Results in a total bid for the project </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Used most when the extent of work cannot be fully determined </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Also, when quantities cannot be accurately calculated until the actual work is performed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Used in civil engineering type projects </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Utilities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Highways </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Dams </li></ul></ul></ul></ul></ul>
  26. 26. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Type of Bid </li></ul></ul><ul><ul><ul><li>Combined Bid </li></ul></ul></ul><ul><ul><ul><ul><li>Bidders are allowed to bid on an individual part, or a combination of parts, </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Work is subdivided into two or more segregated parts or phases </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidders may quote an amount to be subtracted from total of the separate bids </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Segregation of bids may be used in multiple prime contracts </li></ul></ul></ul></ul>
  27. 27. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Security </li></ul></ul><ul><ul><ul><li>Guarantees that if a bid is accepted within the specified time, the bidder will enter into a formal agreement with the owner </li></ul></ul></ul><ul><ul><ul><ul><li>Usually 30 to 90 days from opening of bid </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder guarantees that they will furnish the required performance and payment bonds </li></ul></ul></ul></ul>
  28. 28. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Security </li></ul></ul><ul><ul><ul><li>Purpose is to compensate the owner for damages incurred if the selected bidder does not accept the contract award </li></ul></ul></ul><ul><ul><ul><li>Bid security is returned to selected bidder once performance and payment bonds are issued and contract is executed. </li></ul></ul></ul>
  29. 29. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Security </li></ul></ul><ul><ul><ul><li>Bid Security Requirements information as follows: </li></ul></ul></ul><ul><ul><ul><ul><li>Required amount of bid security </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Usually percentage of bid price </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Or stipulated sum of money </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Form of Bid Security </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cash </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Certified Check </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Bank Draft </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cashier’s Check </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Money Order </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Bid Bond </li></ul></ul></ul></ul></ul>
  30. 30. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Security </li></ul></ul><ul><ul><ul><li>Bid Security Requirements information as follows: </li></ul></ul></ul><ul><ul><ul><ul><li>To whom the bid security is to be payable </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Required licensing or rating of the surety </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Length of time that bid securities will be retained </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Conditions of how bid security will be returned to unsuccessful bidders </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Description of bid security forfeiture conditions </li></ul></ul></ul></ul>
  31. 31. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Security </li></ul></ul><ul><ul><ul><li>Should be acknowledged on Bid Form and submitted with bid. (included in same envelope as bid form, if hand carried) </li></ul></ul></ul><ul><ul><ul><li>If a specific form is to be used, it should be included in the project manual and a statement saying that only the form is accepted. </li></ul></ul></ul><ul><ul><ul><li>Bid security should be checked for correct amount & form at time of bid opening. </li></ul></ul></ul>
  32. 32. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bid Preparation </li></ul></ul><ul><ul><ul><li>Informs bidders how bids are to be prepared </li></ul></ul></ul><ul><ul><ul><li>Instructions for forms </li></ul></ul></ul><ul><ul><ul><li>Number of copies required </li></ul></ul></ul><ul><ul><ul><li>Instruction on how many signatures are required </li></ul></ul></ul><ul><ul><ul><li>Additional information that is to be submitted with bid </li></ul></ul></ul>
  33. 33. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Bond Requirements </li></ul></ul><ul><ul><ul><li>Informs bidders what types of bonds are required </li></ul></ul></ul><ul><ul><ul><ul><li>Labor & Material Payment bond </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Performance bond </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bid bond </li></ul></ul></ul></ul><ul><ul><ul><li>Gives period of time in which the bonds must be furnished </li></ul></ul></ul><ul><ul><ul><li>Bind requirements are coordinated with the conditions of the contract </li></ul></ul></ul>
  34. 34. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Subcontractor Listing </li></ul></ul><ul><ul><ul><li>Explains conditions and requirements that relate to the listing and acceptance of subcontractors </li></ul></ul></ul><ul><ul><ul><li>Bidders should </li></ul></ul></ul><ul><ul><ul><ul><li>submit information as a listing on the bid form, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>attached to the bid form or </li></ul></ul></ul></ul><ul><ul><ul><ul><li>to be furnished within a specified time after the bid opening. </li></ul></ul></ul></ul>
  35. 35. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Identification and Submittal of Bid </li></ul></ul><ul><ul><ul><li>Instructions given regarding the submission of bid </li></ul></ul></ul><ul><ul><ul><li>Basic information given for identification of the bid </li></ul></ul></ul><ul><ul><ul><ul><li>Project name </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Project number </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contract number </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Owner </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bid date and time </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Name of Bidder </li></ul></ul></ul></ul>
  36. 36. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Modification or Withdrawal of Bid </li></ul></ul><ul><ul><ul><li>Info on whether bids can be withdrawn or changed within a time period after submission and bid opening </li></ul></ul></ul><ul><ul><ul><li>Circumstances under which the bidder may not withdraw a bid </li></ul></ul></ul><ul><ul><ul><ul><li>Listed conditions that bids may be withdrawn without forfeiting the bid security </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Procedures for the above listed conditions </li></ul></ul></ul></ul><ul><ul><ul><li>States the length of time the owner can hold the bids before any withdrawal is permitted. </li></ul></ul></ul>
  37. 37. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Disqualification of Bidders </li></ul></ul><ul><ul><ul><li>Conditions under which a bidder will be disqualified </li></ul></ul></ul>
  38. 38. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Applicable Laws </li></ul></ul><ul><ul><ul><li>Listing of federal, state and local laws and regulations </li></ul></ul></ul><ul><ul><ul><li>Keep list short and to the point, it should include: </li></ul></ul></ul><ul><ul><ul><ul><li>Licensing of contractors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Requirements for permits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Exemption from sales tax </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Wage rates and employment requirements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Local labor agreements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Nondiscriminatory hiring practices </li></ul></ul></ul></ul>
  39. 39. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Pre-Bid Conference </li></ul></ul><ul><ul><ul><li>Info on location, time and who may attend and if attendance is mandatory </li></ul></ul></ul><ul><ul><li>Liquidated Damages </li></ul></ul><ul><ul><ul><li>Information regarding the provisions on liquidated damages </li></ul></ul></ul>
  40. 40. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Opening of Bids </li></ul></ul><ul><ul><ul><li>Refer bidder to Invitation to Bid for information regarding Bid Opening </li></ul></ul></ul><ul><ul><ul><li>Can be repeated in Instructions to Bidders section, but not necessary </li></ul></ul></ul>
  41. 41. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Evaluation and Consideration of Bids </li></ul></ul><ul><ul><ul><li>Describes basis under which owner will award contract, including considerations of alternates and unit prices </li></ul></ul></ul><ul><ul><ul><li>Information about the Owner reserving his/her right to reject all bids and right to waive bid irregularities </li></ul></ul></ul>
  42. 42. Bidding Requirements INSTRUCTIONS TO BIDDERS <ul><li>Basic information incorporated into the Instructions to Bidders: </li></ul><ul><ul><li>Execution of Contract </li></ul></ul><ul><ul><ul><li>Listing of requirements and conditions for execution of the agreement, including preparation &examination. </li></ul></ul></ul>
  43. 43. Bidding Requirements BID FORM <ul><li>Prepared document that the bidder will submit to the owner </li></ul><ul><li>Contains blank spaces that are filled in by the bidder </li></ul><ul><li>Contains a space for bidder’s signature or corporate seal </li></ul><ul><ul><li>This is to indicate that the bidder agrees to all bid provisions </li></ul></ul><ul><li>Bid form is located in the Project Manual </li></ul><ul><ul><li>An unbound bid form is usually provided for bidder’s convenience </li></ul></ul>
  44. 44. Bidding Requirements BID FORM <ul><li>Bid form should be prepared to ensure an uniform arrangement that facilitates comparison and equal consideration for awarding the contract </li></ul><ul><li>Bid form is not considered a part of the Instructions to Bidders, but is related to it. </li></ul>
  45. 45. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Project Identification </li></ul></ul><ul><ul><ul><li>Project Name </li></ul></ul></ul><ul><ul><ul><li>Project Number </li></ul></ul></ul><ul><ul><ul><li>Contract Number </li></ul></ul></ul><ul><ul><ul><li>Date of Construction Documents </li></ul></ul></ul><ul><ul><li>Party to Whom Bid is Directed </li></ul></ul><ul><ul><ul><li>Name of Person or Company </li></ul></ul></ul><ul><ul><ul><li>Address </li></ul></ul></ul><ul><ul><ul><li>Headings used are: </li></ul></ul></ul><ul><ul><ul><ul><li>“BID TO:” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“THIS BID IS SUBMITTED TO:” </li></ul></ul></ul></ul>
  46. 46. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Entity Submitting Bid </li></ul></ul><ul><ul><ul><li>Name of Person or Company </li></ul></ul></ul><ul><ul><ul><li>Address </li></ul></ul></ul><ul><ul><ul><li>Headings used are: </li></ul></ul></ul><ul><ul><ul><ul><li>“BID FROM:” </li></ul></ul></ul></ul>
  47. 47. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Acknowledgements </li></ul></ul><ul><ul><ul><li>Bidders must provide statements regarding the following: </li></ul></ul></ul><ul><ul><ul><ul><li>Owner has right to reject bids and waive irregularities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If bid is accepted, bidder agrees to enter into an agreement with owner </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder agrees to abide by Instructions to Bidders regarding disposition of bid security </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder acknowledges receipt of bidding docs; bidders signature will testify to their receipt </li></ul></ul></ul></ul>
  48. 48. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Acknowledgements </li></ul></ul><ul><ul><ul><li>Bidders must provide statements regarding the following: </li></ul></ul></ul><ul><ul><ul><ul><li>Bidder had reviewed and is familiar with local conditions, laws and regulations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder has examined site conditions and all documents and is familiar with both </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder accepts the determinations in the supplementary conditions regarding information upon which the bidder can rely, as well as bidder’s responsibility to obtain additional data. </li></ul></ul></ul></ul>
  49. 49. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Amount of Time for the Bids to be Held Open </li></ul></ul><ul><ul><ul><li>Provide a statement that the bidder agrees to hold the bid open for a stated period of time </li></ul></ul></ul><ul><ul><ul><ul><li>Usually 30 days for private sector work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Usually 60-90 days for govt./public work </li></ul></ul></ul></ul><ul><ul><ul><li>If lower bidder defaults for any reason, this provision allows owner to award contact to another bidder, w/o repeating entire bidding process. </li></ul></ul></ul><ul><ul><ul><li>If length of time is lengthen or shortened, a change to the general conditions and instructions to bidders in necessary. </li></ul></ul></ul>
  50. 50. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Identification of Addenda </li></ul></ul><ul><ul><ul><li>Provides a place for bidder to fill in the number of addenda received and reviewed during the bidding process. </li></ul></ul></ul><ul><ul><ul><li>State that addenda were received and that their costs are included in the bid </li></ul></ul></ul><ul><ul><li>Prices </li></ul></ul><ul><ul><ul><li>Provides blanks for the bidder to fill in all prices. </li></ul></ul></ul><ul><ul><ul><li>Lump sum is quoted in numerical form as well as written word form </li></ul></ul></ul>
  51. 51. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Alternates </li></ul></ul><ul><ul><ul><li>Provides a blank for bidder to fill in bids for alternates that are requested by the architect/owner. </li></ul></ul></ul><ul><ul><ul><li>Also, contractor-proposed substitutions that are permitted by owner </li></ul></ul></ul><ul><ul><ul><li>Alternates are costs that may be used as a substitute or replacement for the specified material or method </li></ul></ul></ul><ul><ul><ul><li>Either add or deduct to the base bid </li></ul></ul></ul>
  52. 52. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Allowances </li></ul></ul><ul><ul><ul><li>Cash amount or quantity that bidder is required to include in bid to cover specific work that has not been fully defined. </li></ul></ul></ul><ul><ul><ul><ul><li>Cash Allowance - dollar amount for specific item </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Quantity Allowance – an estimated quantity of items </li></ul></ul></ul></ul><ul><ul><li>Combined Bids </li></ul></ul><ul><ul><ul><li>If combined bids have been requested, the form must have instructions to indicate acceptable methods are combining separately listed bids. </li></ul></ul></ul><ul><ul><ul><ul><li>ie.; lump sum or percentage deduction from total separate bids </li></ul></ul></ul></ul>
  53. 53. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Completion Date </li></ul></ul><ul><ul><ul><li>Provides a statement indicating date that the project is to be completed from time of award. </li></ul></ul></ul><ul><ul><ul><ul><li>Designates a specific date </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Designates a number of days for construction </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Calendar days </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Working days </li></ul></ul></ul></ul></ul><ul><ul><li>Liquidated Damages </li></ul></ul><ul><ul><ul><li>Acknowledgement for provisions for liquated damages, if necessary </li></ul></ul></ul>
  54. 54. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Attachments </li></ul></ul><ul><ul><ul><li>Provide a statement that necessary attachments are enclosed, including: </li></ul></ul></ul><ul><ul><ul><ul><li>Bid Security </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Subcontractor Listing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Statements or evidence of bidder’s qualifications </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Bidder’s Financial Statement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Noncollusion Affidavit </li></ul></ul></ul></ul><ul><ul><ul><li>List other required documents for specific attachments </li></ul></ul></ul>
  55. 55. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Closing </li></ul></ul><ul><ul><ul><li>Signature of the appropriate party/parties </li></ul></ul></ul><ul><ul><ul><li>Date of signature </li></ul></ul></ul><ul><ul><ul><li>Corporate Seal of bidder </li></ul></ul></ul>
  56. 56. Bidding Requirements INFORMATION AVAILABLE TO BIDDERS <ul><li>Bidder’s use in preparing bids </li></ul><ul><ul><li>But not always included in Bidding Requirements </li></ul></ul><ul><li>Possible information included: </li></ul><ul><ul><li>Subsurface and existing conditions </li></ul></ul><ul><ul><ul><li>Geotechnical reports </li></ul></ul></ul><ul><ul><ul><li>Soil-boring logs </li></ul></ul></ul><ul><ul><ul><li>Hazardous-materials reports </li></ul></ul></ul><ul><ul><ul><li>Descriptions of site, existing buildings </li></ul></ul></ul><ul><ul><ul><li>Property surveys </li></ul></ul></ul><ul><li>Bidder’s are still required to do own investigation to determine accuracy of info given </li></ul>
  57. 57. Bidding Requirements INFORMATION AVAILABLE TO BIDDERS <ul><li>Information is addressed in two documents </li></ul><ul><ul><li>AIA Document A201 (American Institute of Architects) </li></ul></ul><ul><ul><li>EJCDC Document 1910-8 (Const. Specification Inst.) </li></ul></ul><ul><ul><li>Each document address concealed conditions differently </li></ul></ul><ul><li>Generally, the information should include a reference and describe where it’s availability and location can be found </li></ul>
  58. 58. Bidding Requirements INFORMATION AVAILABLE TO BIDDERS <ul><li>AIA Document A201 </li></ul><ul><ul><li>subparagraph 4.3.6 “Claims for concealed or Unknown Conditions” </li></ul></ul><ul><li>If conditions are encountered at the site which are </li></ul><ul><li>(1) subsurface or otherwise concealed physical conditions which differ materially from those indicated in the Contract Documents or </li></ul><ul><li>(2) unknown physical conditions of an unusual nature, which differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, then notice by the observing party shall be given to the other party promptly before conditions are disturbed and in no event later than 21 days after first observance of the conditions. The Architect will promptly investigate such conditions and, if they differ materially and cause an increase of decrease in the Contractor’s cost of, or time required for, performance of any part of the Work, will recommend an equitable adjustment in the Contract Sum or Contract Time, or both. </li></ul>
  59. 59. Bidding Requirements INFORMATION AVAILABLE TO BIDDERS <ul><li>EJCDC Document 1910-8 </li></ul><ul><ul><li>subparagraph 4.2 “Subsurface and Physical Conditions” </li></ul></ul><ul><ul><li>subparagraph 4.3 “Physical Conditions-Underground Facilities” </li></ul></ul><ul><li>This document address concealed conditions in greater detail than the AIA Doc. A201 </li></ul><ul><li>This document is primarily used in engineering projects </li></ul><ul><ul><li>Encounter of differing subsurface and existing conditions affects the majority of the work. </li></ul></ul>
  60. 60. NEXT CLASS PROJECT AWARD General Conditions Supplementary Conditions Contract Forms

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