ACH 231 Lecture 07 (Contract Documents) Part 2

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ACH 231 Lecture 07 (Contract Documents) Part 2

  1. 1. Contract Documents Parts of Construction Documents The Bidding Process & Requirements Construction Contracts- AIA Family of Documents
  2. 2. PART 2 The Bidding Process & Requirements
  3. 3. BASIC PRINCIPLE: ALL BIDDERS RECEIVE IDENTICAL CONSIDERATION AND BID ON AN IDENTICAL BASIS.
  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 contractor’s 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 <ul><li>Invitation to Bid </li></ul><ul><li>Instructions to Bidders </li></ul><ul><li>Information Available to Bidders </li></ul><ul><ul><li>Preliminary Schedule </li></ul></ul><ul><ul><li>Geotechnical Information </li></ul></ul><ul><ul><li>Existing Conditions Documents </li></ul></ul><ul><li>Bid Forms and Attachments </li></ul><ul><li>Bid Security Forms </li></ul>
  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>AIA Document A701 </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><li>Cost-Plus-Fee </li></ul></ul></ul><ul><ul><ul><li>Guaranteed Maximum Price (GMP) </li></ul></ul></ul><ul><ul><ul><li>Unit Price </li></ul></ul></ul>Will review types of Contracts in Part 3
  23. 23. 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>
  24. 24. 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>
  25. 25. 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>Bid Bond </li></ul></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>
  26. 26. 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>
  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>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>
  28. 28. 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>
  29. 29. 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>
  30. 30. 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>
  31. 31. 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>
  32. 32. 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>
  33. 33. 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>
  34. 34. 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>
  35. 35. 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>
  36. 36. 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>
  37. 37. 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>
  38. 38. 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>
  39. 39. 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>
  40. 40. 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>
  41. 41. 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>
  42. 42. 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>
  43. 43. 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>
  44. 44. 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>
  45. 45. 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>
  46. 46. 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>
  47. 47. 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><ul><li>Gives the owner ability to “up-grade” if base bids are within or under budget </li></ul></ul></ul></ul><ul><ul><ul><li>Either add or deduct to the base bid </li></ul></ul></ul><ul><ul><ul><ul><li>Pricing is separate from base bid </li></ul></ul></ul></ul>
  48. 48. 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>
  49. 49. 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>
  50. 50. Bidding Requirements BID FORM <ul><li>ELEMENTS of the BID FORM: </li></ul><ul><ul><li>Liquidated Damages </li></ul></ul><ul><ul><ul><li>Stated amount of money paid to owner by contractor for failure to complete project by stated completion date </li></ul></ul></ul><ul><ul><ul><li>Acknowledgement for provisions for liquated damages, if necessary </li></ul></ul></ul>
  51. 51. 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>
  52. 52. 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>
  53. 53. NEXT LECTURE-PART 3 Construction Contracts

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