Bidding & Procurement Flashcards

Which document formally invites contractors to submit bids for a construction project?

Answer: Invitation to Bid

The Invitation to Bid (ITB) is the formal document that solicits competitive bids from qualified contractors.

A bid bond protects the project owner by ensuring the bidder will:

Answer: Enter into contract if awarded the bid

A bid bond guarantees that the bidder will enter into a contract and provide required bonds if their bid is accepted.

In competitive bidding, an addendum issued during the bid period must be acknowledged by bidders because:

Answer: It modifies the bidding documents and affects all bids equally

Addenda modify the bidding documents and must be acknowledged to ensure all bidders are pricing the same scope of work.

The term 'public bidding' refers to a procurement process that:

Answer: Requires bids to be advertised and open to all qualified contractors

Public bidding requires the project to be publicly advertised and open to any qualified contractor, typically mandated for government-funded projects.

Which procurement method involves negotiating a contract with a single contractor without competitive bidding?

Answer: Sole source procurement

Sole source procurement bypasses competitive bidding by negotiating directly with a single, specifically chosen contractor.

A pre-bid conference is held primarily to:

Answer: Allow bidders to clarify questions about the project documents

Pre-bid conferences give potential bidders an opportunity to ask questions and receive clarifications about the project documents before submitting bids.

When bid prices are significantly lower than the architect's estimate, the owner should:

Answer: Investigate the bid for potential errors or omissions before award

An unexpectedly low bid may indicate mathematical errors, misunderstanding of scope, or an unrealistic price that could lead to contractor default.