Bid Preparation & Submission Flashcards

In competitive sealed bidding, bids are typically opened:

Answer: Publicly at the designated time and location stated in the bid documents

Public bid openings promote transparency and ensure all bidders are treated fairly under the same conditions.

An estimator's labor cost calculation should include which of the following in addition to base wages?

Answer: Labor burden including payroll taxes, insurance, and benefits

Labor burden adds payroll taxes, workers' compensation, health benefits, and other employer costs on top of the base wage rate.

What is the typical range of bid contingency added by estimators for projects with high uncertainty?

Answer: 5–15%

High-uncertainty projects may warrant a 5–15% contingency to cover unforeseen conditions, while well-defined projects may need little or none.

A notice to bidders differs from instructions to bidders in that it:

Answer: Is a public announcement advertising the bid opportunity

The notice to bidders (advertisement for bids) publicly announces the project and invites contractors to obtain bid documents.

Which contract delivery method requires the estimator to price both design and construction in a single bid?

Answer: Design-Build

Design-Build contracts combine design services and construction into a single contract, requiring the estimator to price both phases.

When an owner issues a bid document that says 'or equal,' this means the contractor:

Answer: May propose a substitute product that meets the same performance specifications

'Or equal' permits substitution of equivalent products that meet the specified performance and quality requirements.

What document transfers ownership of materials or completed work to the owner in exchange for payment?

Answer: A lien waiver

Lien waivers release the contractor's or supplier's right to place a mechanics lien upon receiving payment, protecting the owner's title.