Subcontractor & Vendor Management Flashcards

When evaluating a subcontractor's bid, which factor is most critical beyond the quoted price?

Answer: Scope coverage completeness

Scope coverage completeness ensures the subcontractor's bid includes all required work items, preventing costly change orders later.

A subcontractor submits a bid that is 30% below the next lowest bid. The estimator should:

Answer: Investigate the bid for missing scope or errors before accepting

An abnormally low bid often signals missing scope, arithmetic errors, or financial instability that could jeopardize project completion.

Which document formally defines the work scope, schedule, and payment terms between a general contractor and a subcontractor?

Answer: Subcontract agreement

The subcontract agreement is the legally binding document that establishes all terms, obligations, and deliverables between the GC and subcontractor.

Pre-qualification of subcontractors primarily helps the estimator to:

Answer: Ensure only capable, financially stable firms are invited to bid

Pre-qualification filters out unqualified or financially weak subcontractors before they submit bids, reducing risk to the project.

In subcontractor bid leveling, the estimator's goal is to:

Answer: Adjust all bids to a common scope basis for fair comparison

Bid leveling normalizes scope differences across multiple subcontractor bids so they can be compared on an equal basis.

Which type of bond guarantees that a subcontractor will complete the contracted work?

Answer: Performance bond

A performance bond guarantees the surety will ensure project completion if the subcontractor defaults on their contractual obligations.

When a vendor's material lead time exceeds the project schedule requirement, the estimator should:

Answer: Include expediting costs or identify an alternative supplier

Long lead times must be addressed by budgeting expediting premiums or identifying alternate suppliers to protect the project schedule.