CPE Bid Preparation & Submission 2 — Questions and Answers
Question 1: What is the primary purpose of a bid bond in construction estimating?
- To guarantee the owner receives the lowest price
- To assure the owner the bidder will execute the contract if awarded (Correct answer)
- To cover material cost overruns during construction
- To provide performance assurance after project completion
Correct answer: To assure the owner the bidder will execute the contract if awarded
A bid bond guarantees the bidder will enter into the contract at the bid price if selected.
Question 2: When reviewing subcontractor quotes, an estimator discovers two subs quoted significantly lower than all others. The best course of action is to:
- Automatically use the two lowest quotes to minimize cost
- Verify scope coverage and check for potential errors or omissions in those quotes (Correct answer)
- Discard the low quotes and average the remaining ones
- Submit the bid using all quotes equally weighted
Correct answer: Verify scope coverage and check for potential errors or omissions in those quotes
Unusually low quotes often indicate scope gaps or errors that could lead to disputes or cost overruns during construction.
Question 3: Which document typically defines the legal obligations of the owner, contractor, and subcontractors during bidding?
- The project schedule
- The Instructions to Bidders (Correct answer)
- The material take-off sheet
- The cost code summary
Correct answer: The Instructions to Bidders
The Instructions to Bidders outlines bidding procedures, requirements, and the legal obligations of all parties.
Question 4: A bid alternate is best described as:
- A revision to the base bid scope for added or deducted work priced separately (Correct answer)
- A substitution of one subcontractor for another after award
- A contingency budget for unforeseen site conditions
- A secondary bid submitted after the primary bid deadline
Correct answer: A revision to the base bid scope for added or deducted work priced separately
Bid alternates allow owners to evaluate add or deduct scope items separately from the base bid.
Question 5: What does 'responsive bid' mean in competitive bidding?
- The bid is submitted before the deadline with all required documents (Correct answer)
- The bid price is the lowest of all submitted bids
- The bidder responds promptly to owner questions after submission
- The bid includes a fast-track construction schedule
Correct answer: The bid is submitted before the deadline with all required documents
A responsive bid complies with all bid requirements and is submitted on time with all required documents.
Question 6: Which factor should NOT typically influence a contractor's decision to bid on a project?
- Current backlog and workforce availability
- The personal friendship between the estimator and project owner (Correct answer)
- Familiarity with the project type and scope
- Likelihood of project being funded and proceeding
Correct answer: The personal friendship between the estimator and project owner
Personal relationships should not drive bid/no-bid decisions; objective criteria such as capacity, expertise, and project viability should guide the decision.
Question 7: When is it appropriate to request a bid extension from the owner?
- When the estimator wants more time to negotiate with subcontractors after submission
- When critical bid documents are issued late or scope changes occur close to the deadline (Correct answer)
- When the contractor's backlog is too high to take on new work
- When the bid price exceeds the owner's published budget
Correct answer: When critical bid documents are issued late or scope changes occur close to the deadline
A bid extension is appropriate when late addenda or significant scope changes do not allow adequate time for accurate pricing.
CPE Bid Preparation & Submission 2
What is the primary purpose of a bid bond in construction estimating?