Estimating and Bidding Processes Flashcards
7 cards from real CPE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Estimating and Bidding Processes flashcards as text
What is the primary purpose of a bid bond in the construction bidding process?
Answer: Ensures the bidder will enter into contract if awarded
A bid bond guarantees that the winning bidder will execute the contract and provide required performance and payment bonds.
In competitive sealed bidding, when must addenda be issued to prospective bidders?
Answer: Before bids are submitted, with adequate time to respond
Addenda must be issued prior to bid submission with sufficient time for bidders to incorporate changes into their proposals.
Which method of bid delivery requires the contractor to provide both design and construction services under a single contract?
Answer: Design-Build
Design-Build contracts consolidate design and construction responsibilities under one entity, reducing the owner's coordination burden.
What does the term 'scope creep' mean in the context of project estimating?
Answer: Uncontrolled expansion of project scope beyond original requirements
Scope creep refers to the gradual, often uncontrolled expansion of a project's scope without corresponding adjustments to budget or schedule.
A contractor submits a bid of $500,000. After bid opening, the contractor discovers a $40,000 clerical error. What is the typical allowed remedy?
Answer: Contractor may withdraw the bid upon proof of error
Most jurisdictions allow bid withdrawal (not correction) when a bidder can demonstrate a bona fide clerical error before contract execution.
What is a 'unit price' contract, and when is it most appropriate?
Answer: A contract where payment is based on quantities of work performed, used when final quantities are uncertain
Unit price contracts pay based on actual quantities installed, making them ideal for projects where the exact scope quantities cannot be precisely determined in advance.
Which document formally defines the work scope, materials, and workmanship standards that a contractor must follow during construction?
Answer: Specifications
Specifications are the written technical requirements that define quality, materials, and workmanship standards for the project.