CSI Procurement & Bidding Procedures 3

Question 1

What distinguishes a 'negotiated contract' from a 'competitive bid' contract?

Accepted Answer

The owner selects a contractor and agrees on terms without formal competitive bidding

Answer

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?

Accepted Answer

Notice Inviting Bids (Advertisement for Bids)

Answer

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?

Accepted Answer

Acknowledge receipt of the addendum in their bid submission

Answer

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?

Accepted Answer

After design development or construction documents are sufficiently complete

Answer

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?

Accepted Answer

To protect subcontractors and suppliers from non-payment by the contractor

Answer

A payment bond protects subcontractors, suppliers, and laborers by guaranteeing they will be paid even if the general contractor defaults.

(CSI) Construction Specifications Institute Certification Practice Test

(CSI) Construction Specifications Institute Certification Practice Test

CSI Procurement & Bidding Procedures 3