Bid Preparation & Submission Flashcards

In lump sum bidding, the contractor bears the risk of:

Answer: Inaccurate quantity take-offs included in the contractor's estimate

In a lump sum contract, the contractor assumes responsibility for all quantity and scope interpretation within the bid documents.

What is the function of a bid summary sheet in the estimating process?

Answer: It consolidates all cost components into a final bid total

The bid summary sheet combines labor, material, subcontractor, equipment, overhead, and profit into the final bid amount.

Which of the following is an example of a unit price contract bid item?

Answer: Excavation per cubic yard at $18.50/CY

Unit price contracts price discrete measurable work items per unit, such as excavation by the cubic yard.

What information is typically included on a bid form submitted to an owner?

Answer: Total bid price, alternates pricing, and acknowledgment of addenda received

Bid forms typically capture the base bid, alternate prices, unit prices if required, and confirmation of all addenda received.

An estimator finds an addendum issued 24 hours before the bid deadline changes a major structural system. The correct action is to:

Answer: Request a bid extension, price the addendum changes, and acknowledge receipt on the bid form

Major late addenda may require requesting an extension to properly evaluate cost impacts while acknowledging the change.

What does bid shopping refer to in construction practice?

Answer: A general contractor revealing sub bids to competitors to drive prices down

Bid shopping is the unethical practice of using a subcontractor's price to pressure other subs to underbid them.

Which element of profit markup should account for the risk level inherent in the project scope?

Answer: Risk-adjusted profit percentage

Profit markup should be adjusted upward for high-risk projects to compensate for the additional uncertainty and exposure.