CSI Procurement & Bidding Procedures 3 — Questions and Answers
Question 1: What distinguishes a 'negotiated contract' from a 'competitive bid' contract?
- Negotiated contracts always cost more
- The owner selects a contractor and agrees on terms without formal competitive bidding (Correct answer)
- Negotiated contracts require a performance bond
- Competitive bids are used only on private projects
Correct answer: The owner selects a contractor and agrees on terms without formal competitive bidding
In a negotiated contract, the owner chooses a preferred contractor and negotiates price and terms directly, bypassing the formal competitive bidding process.
Question 2: Which document informs prospective bidders that a project is available for bidding?
- Bid Form
- Notice Inviting Bids (Advertisement for Bids) (Correct answer)
- Supplementary Conditions
- Bidder's Qualification Statement
Correct answer: Notice Inviting Bids (Advertisement for Bids)
The Notice Inviting Bids (or Advertisement for Bids) is the public announcement that solicits contractor interest and provides basic project information.
Question 3: When an addendum is issued during the bidding period, what action must bidders take?
- Submit a revised bid immediately
- Acknowledge receipt of the addendum in their bid submission (Correct answer)
- Withdraw their bid if they disagree with the changes
- Notify the architect in writing within 24 hours
Correct answer: Acknowledge receipt of the addendum in their bid submission
Bidders are required to acknowledge receipt of all addenda on the bid form to confirm their bid incorporates all issued modifications.
Question 4: In a construction manager at-risk (CMAR) delivery, the construction manager provides a guaranteed maximum price (GMP) at which stage?
- During schematic design
- After design development or construction documents are sufficiently complete (Correct answer)
- Before the owner selects the CM
- At the time of substantial completion
Correct answer: After design development or construction documents are sufficiently complete
The GMP is typically established once design is sufficiently advanced (often at 60-100% construction documents) to accurately define scope and price.
Question 5: What is the primary purpose of a payment bond in construction contracting?
- To guarantee the contractor completes the project
- To protect subcontractors and suppliers from non-payment by the contractor (Correct answer)
- To ensure the owner pays the contractor on time
- To cover liquidated damages for project delays
Correct answer: To protect subcontractors and suppliers from non-payment by the contractor
A payment bond protects subcontractors, suppliers, and laborers by guaranteeing they will be paid even if the general contractor defaults.
Question 6: Which procurement method allows the owner to select a contractor based on qualifications before price is negotiated?
- Hard-bid procurement
- Qualifications-Based Selection (QBS) (Correct answer)
- Multi-prime contracting
- Competitive sealed bidding
Correct answer: Qualifications-Based Selection (QBS)
QBS selects a contractor (or design professional) based solely on qualifications and experience, with fee negotiation occurring afterward.
Question 7: What information is typically NOT included in the Instructions to Bidders?
- Bid opening date and time
- Required bid security amount
- Technical specifications for materials (Correct answer)
- Procedures for submitting questions
Correct answer: Technical specifications for materials
Technical material specifications belong in Division 02–49 specification sections, not the Instructions to Bidders, which covers procedural bidding requirements.
CSI Procurement & Bidding Procedures 3
What distinguishes a 'negotiated contract' from a 'competitive bid' contract?