CPE Estimating and Bidding Processes 2

Question 1

What is the primary purpose of a bid bond in the construction bidding process?

Accepted Answer

Ensures the bidder will enter into contract if awarded

Answer

A bid bond guarantees that the winning bidder will execute the contract and provide required performance and payment bonds.

Question 2

In competitive sealed bidding, when must addenda be issued to prospective bidders?

Accepted Answer

Before bids are submitted, with adequate time to respond

Answer

Addenda must be issued prior to bid submission with sufficient time for bidders to incorporate changes into their proposals.

Question 3

Which method of bid delivery requires the contractor to provide both design and construction services under a single contract?

Accepted Answer

Design-Build

Answer

Design-Build contracts consolidate design and construction responsibilities under one entity, reducing the owner's coordination burden.

Question 4

What does the term 'scope creep' mean in the context of project estimating?

Accepted Answer

Uncontrolled expansion of project scope beyond original requirements

Answer

Scope creep refers to the gradual, often uncontrolled expansion of a project's scope without corresponding adjustments to budget or schedule.

Question 5

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?

Accepted Answer

Contractor may withdraw the bid upon proof of error

Answer

Most jurisdictions allow bid withdrawal (not correction) when a bidder can demonstrate a bona fide clerical error before contract execution.

(CPE) Certified Professional Estimator Practice Test