CSI Procurement & Bidding Procedures 2 — Questions and Answers
Question 1: Which document formally establishes the legal relationship between the owner and the contractor?
- Notice to Proceed
- Agreement Form (Correct answer)
- Bid Bond
- Certificate of Substantial Completion
Correct answer: Agreement Form
The Agreement Form (AIA A101 or similar) is the contract document that legally binds the owner and contractor.
Question 2: What is the purpose of a pre-bid conference in the procurement process?
- To award the contract to the lowest bidder
- To allow bidders to clarify ambiguities in the bidding documents (Correct answer)
- To negotiate final contract terms
- To issue the Notice to Proceed
Correct answer: To allow bidders to clarify ambiguities in the bidding documents
Pre-bid conferences give prospective bidders the opportunity to ask questions and receive clarifications about the project scope and documents.
Question 3: Under a design-build delivery method, who is responsible for both design and construction?
- The owner
- A single entity under contract to the owner (Correct answer)
- The construction manager
- The architect of record
Correct answer: A single entity under contract to the owner
In design-build, a single entity holds the contract for both design services and construction, providing the owner a single point of responsibility.
Question 4: What does the term 'responsive bid' mean in competitive bidding?
- A bid submitted before the deadline with all required documents (Correct answer)
- A bid that is the lowest price received
- A bid from a contractor with prior project experience
- A bid that includes a voluntary alternate
Correct answer: A bid submitted before the deadline with all required documents
A responsive bid complies with all procedural requirements of the bidding documents, including timely submission and required attachments.
Question 5: Which CSI MasterFormat division primarily covers bidding requirements and contracting requirements?
- Division 00 (Correct answer)
- Division 01
- Division 03
- Division 50
Correct answer: Division 00
MasterFormat Division 00 — Procurement and Contracting Requirements — contains bidding forms, agreements, bonds, and conditions of the contract.
Question 6: A 'unit price' bid requires bidders to submit pricing based on which of the following?
- A lump sum for the entire project
- Cost per measured unit of work (Correct answer)
- Percentage markup over actual costs
- Fixed fee plus reimbursable expenses
Correct answer: Cost per measured unit of work
Unit price bidding establishes a cost per unit (e.g., per cubic yard of concrete) so the final contract amount adjusts based on actual quantities.
Question 7: What is the role of a surety company in the context of construction procurement?
- It provides project financing to the owner
- It guarantees the contractor's performance and payment obligations (Correct answer)
- It inspects the work for code compliance
- It reviews and approves shop drawings
Correct answer: It guarantees the contractor's performance and payment obligations
A surety company issues bonds (bid, performance, payment) that guarantee the contractor will fulfill contractual obligations or the surety will remedy defaults.
CSI Procurement & Bidding Procedures 2
Which document formally establishes the legal relationship between the owner and the contractor?