Construction Procurement and Subcontracting Flashcards

Which procurement method requires a general contractor to publicly advertise a project and award the contract to the lowest responsive and responsible bidder?

Answer: Competitive sealed bidding

Competitive sealed bidding requires public advertisement, sealed submissions, and award to the lowest qualified bidder, maximizing price competition.

A 'responsible bidder' in construction procurement is one that:

Answer: Demonstrates the financial, technical, and managerial capability to perform the contract

Responsibility refers to a bidder's demonstrated capacity—financial, technical, and managerial—to successfully complete the contract.

Which document establishes the minimum qualifications subcontractors must meet before being considered for a construction project?

Answer: Prequalification questionnaire

A prequalification questionnaire collects financial statements, safety records, references, and licenses to screen subcontractors before they are permitted to bid.

A construction auditor reviewing subcontract awards should verify that subcontractor selection was based on:

Answer: Documented evaluation criteria applied consistently to all bidders

Documented, consistently applied evaluation criteria provide objective evidence that subcontractor selection was fair and free from favoritism.

Under the Miller Act, prime contractors on federal construction projects exceeding $150,000 must obtain:

Answer: A performance bond and a payment bond

The Miller Act requires both a performance bond (guaranteeing project completion) and a payment bond (ensuring subcontractors and suppliers are paid) on federal projects over $150,000.

Which procurement document is used to solicit prices for well-defined construction work where the scope is fully specified?

Answer: Invitation for Bids (IFB)

An IFB (also called an Invitation to Bid or ITB) is used when scope is fully defined and the selection criterion is price, inviting sealed competitive bids.