CDT Bidding & Procurement 1 — Questions and Answers
Question 1: Which document formally invites contractors to submit bids for a construction project?
- Notice to Proceed
- Invitation to Bid (Correct answer)
- Request for Proposal
- Letter of Intent
Correct answer: Invitation to Bid
The Invitation to Bid (ITB) is the formal document that solicits competitive bids from qualified contractors.
Question 2: A bid bond protects the project owner by ensuring the bidder will:
- Complete the project on time
- Enter into contract if awarded the bid (Correct answer)
- Provide a performance guarantee
- Pay subcontractors promptly
Correct 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.
Question 3: In competitive bidding, an addendum issued during the bid period must be acknowledged by bidders because:
- It replaces the original contract documents entirely
- It modifies the bidding documents and affects all bids equally (Correct answer)
- It only applies to the lowest bidder
- It extends the project schedule automatically
Correct 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.
Question 4: The term 'public bidding' refers to a procurement process that:
- Allows only pre-qualified contractors to bid
- Requires bids to be advertised and open to all qualified contractors (Correct answer)
- Is limited to projects under a specified dollar threshold
- Restricts participation to local contractors only
Correct 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.
Question 5: Which procurement method involves negotiating a contract with a single contractor without competitive bidding?
- Lump sum bidding
- Sole source procurement (Correct answer)
- Unit price bidding
- Best value selection
Correct answer: Sole source procurement
Sole source procurement bypasses competitive bidding by negotiating directly with a single, specifically chosen contractor.
Question 6: A pre-bid conference is held primarily to:
- Select the winning bidder before bids are submitted
- Allow bidders to clarify questions about the project documents (Correct answer)
- Negotiate the contract price in advance
- Finalize the project schedule with all bidders
Correct 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.
Question 7: When bid prices are significantly lower than the architect's estimate, the owner should:
- Accept the low bid immediately to save money
- Investigate the bid for potential errors or omissions before award (Correct answer)
- Reject all bids and re-bid the project
- Increase the project scope to justify the award
Correct 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.
CDT Bidding & Procurement 1
Which document formally invites contractors to submit bids for a construction project?