CEC Bid Preparation & Submission 2 — Questions and Answers
Question 1: What is the primary purpose of a bid bond in construction bidding?
- To guarantee project completion on schedule
- To ensure the bidder will enter into contract if awarded (Correct answer)
- To cover subcontractor payment disputes
- To protect the owner against defective work
Correct answer: To ensure the bidder will enter into contract if awarded
A bid bond guarantees that if a contractor is awarded the project, they will execute the contract and provide required performance and payment bonds.
Question 2: Which document typically outlines the legal conditions, owner-contractor relationship, and contract terms in a bid package?
- Scope of Work
- General Conditions (Correct answer)
- Addendum
- Notice to Bidders
Correct answer: General Conditions
The General Conditions define the rights, responsibilities, and relationships of all parties involved and establish legal and procedural framework for the project.
Question 3: A contractor receives an addendum two days before bid submission. What is the correct action?
- Ignore it if it doesn't affect your scope
- Incorporate changes and acknowledge the addendum in the bid (Correct answer)
- Request a bid extension automatically
- Submit the original bid and note objection to the addendum
Correct answer: Incorporate changes and acknowledge the addendum in the bid
All addenda must be acknowledged in the bid and their changes incorporated into pricing to ensure the bid is responsive.
Question 4: What does the term 'bid shopping' refer to in construction?
- Comparing material costs from multiple suppliers
- A general contractor revealing subcontractor bids to competitors to obtain lower prices (Correct answer)
- Requesting multiple bids from the same subcontractor
- Evaluating bids based on qualifications rather than price
Correct answer: A general contractor revealing subcontractor bids to competitors to obtain lower prices
Bid shopping is the unethical practice where a GC reveals a sub's bid price to other subs to pressure lower numbers after bid opening.
Question 5: When preparing a unit price bid, what does the estimated quantity represent?
- The exact amount of work to be performed
- An owner's approximation used for bid comparison purposes (Correct answer)
- The contractor's guaranteed production rate
- The minimum quantity the contractor must install
Correct answer: An owner's approximation used for bid comparison purposes
In unit price contracts, quantities are owner-estimated approximations for comparison; actual payment is based on measured quantities in place.
Question 6: Which of the following best describes a 'responsive bid'?
- A bid submitted before the deadline with all required forms completed
- A bid that conforms to all requirements of the invitation for bids (Correct answer)
- A bid that comes in under the owner's budget estimate
- A bid that includes alternates and value engineering options
Correct answer: A bid that conforms to all requirements of the invitation for bids
A responsive bid complies with all material requirements of the solicitation; non-responsive bids may be rejected regardless of price.
Question 7: What is a 'bid tabulation' used for?
- Tracking subcontractor payment schedules
- Comparing all received bids side-by-side to evaluate pricing and compliance (Correct answer)
- Summarizing material quantities for procurement
- Scheduling milestone dates for the project
Correct answer: Comparing all received bids side-by-side to evaluate pricing and compliance
A bid tabulation lists all submitted bids in a comparative format, allowing owners to evaluate prices and identify the apparent low bidder.
CEC Bid Preparation & Submission 2
What is the primary purpose of a bid bond in construction bidding?