CEC Bid Preparation & Submission 2

Question 1

What is the primary purpose of a bid bond in construction bidding?

Accepted Answer

To ensure the bidder will enter into contract if awarded

Answer

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?

Accepted Answer

General Conditions

Answer

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?

Accepted Answer

Incorporate changes and acknowledge the addendum in the bid

Answer

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?

Accepted Answer

A general contractor revealing subcontractor bids to competitors to obtain lower prices

Answer

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?

Accepted Answer

An owner's approximation used for bid comparison purposes

Answer

In unit price contracts, quantities are owner-estimated approximations for comparison; actual payment is based on measured quantities in place.

(CEC) Construction Estimator Certification Practice Test

(CEC) Construction Estimator Certification Practice Test

CEC Bid Preparation & Submission 2