Estimating and Bidding Processes Flashcards

In competitive bidding, what is the purpose of requiring bidders to list major subcontractors on the bid form?

Answer: To prevent bid shopping and ensure the subcontractors listed are actually used

Listing subcontractors on the bid form discourages bid shopping by committing the prime contractor to use those firms and protecting subcontractors' prices.

What does the term 'escalation' refer to in long-duration project estimating?

Answer: The anticipated rise in cost of labor and materials over the project duration

Escalation adjustments account for anticipated price increases in labor and materials over time on projects with extended procurement or construction schedules.

Which of the following best describes a 'competitive sealed proposal' as compared to a 'competitive sealed bid'?

Answer: Proposals allow evaluation of factors beyond price; bids are awarded solely to the lowest price

Sealed proposals permit evaluation of technical merit, experience, and price together, whereas sealed bids are awarded strictly to the lowest responsive, responsible bidder.

What is a 'notice to proceed' (NTP) in the construction contracting process?

Answer: The document authorizing the contractor to begin work on a specified date

The Notice to Proceed is the owner's written authorization establishing the date the contractor may officially begin work and from which contract time is measured.

When preparing a bid for a public project, a contractor discovers a significant ambiguity in the drawings. What is the proper course of action?

Answer: Submit a Request for Information (RFI) or written question before the bid deadline

Submitting a written RFI before the bid deadline allows the owner/designer to issue a clarifying addendum that applies equally to all bidders.

Which of the following best describes the concept of 'responsive' versus 'responsible' in bid evaluation?

Answer: Responsive means the bid meets all submission requirements; responsible means the bidder has the capability to perform

A responsive bid conforms to the bid requirements (complete, bonded, signed), while a responsible bidder demonstrates the financial and technical capacity to perform the work.

What is the primary purpose of including a contingency in a construction estimate?

Answer: To provide a financial reserve for undefined scope and unforeseen conditions within the known project

Contingency reserves cover uncertainties inherent in the estimate scope—incomplete design, unforeseen site conditions, and quantity estimation error—not contractor inefficiency or change orders.