LARE Bidding and Contract Administration Flashcards

In competitive bidding, what does the term 'bid alternates' refer to?

Answer: Add or deduct items priced separately that the owner may accept or reject

Bid alternates are separately priced add or deduct items that allow the owner to adjust project scope based on available budget after reviewing base bids.

Which document formally transfers ownership of the project from the contractor to the owner upon completion?

Answer: Notice of completion and acceptance

The notice of completion and acceptance (or similar document) formally acknowledges that the owner accepts the completed work and assumes ownership and responsibility.

A bid bond is typically set at what percentage of the bid amount?

Answer: 5–10%

Bid bonds are typically 5–10% of the bid amount, representing the difference between the low bid and next bid if the low bidder fails to execute the contract.

Which of the following best describes the 'unit price' method of contracting used on landscape projects?

Answer: Payment based on actual quantities installed multiplied by agreed unit rates

Unit price contracts pay the contractor an agreed price per unit of measure (e.g., per square yard of sod, per tree planted) based on quantities actually installed.

During a pre-bid conference, an owner's representative makes a verbal clarification about the project scope. How should this clarification be handled?

Answer: It must be confirmed in a written addendum issued to all bidders

All clarifications, regardless of how communicated, must be issued as a formal written addendum to all plan holders to be contractually binding.

A contractor claims that unusually severe weather delayed the project schedule. To be eligible for a time extension, the contractor must typically:

Answer: Submit the claim within 21 days of the weather event per most standard contracts

Most standard contracts (AIA, ConsensusDocs) require the contractor to provide written notice of delay claims within 21 days of the event to preserve the claim.

What is the typical purpose of retainage in a construction contract?

Answer: To provide the owner security against incomplete or defective work

Retainage (typically 5–10% of each progress payment) is withheld to ensure the contractor completes all work and corrects deficiencies before receiving full payment.