LARE LARE Bidding and Contract Administration 3 — Questions and Answers
Question 1: In competitive bidding, what does the term 'bid alternates' refer to?
- Secondary bidders who submit proposals in case the low bidder withdraws
- Add or deduct items priced separately that the owner may accept or reject (Correct answer)
- Alternative contract delivery methods offered by the bidder
- Backup material substitutions proposed by the contractor
Correct 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.
Question 2: Which document formally transfers ownership of the project from the contractor to the owner upon completion?
- Certificate of substantial completion
- Final certificate for payment
- Notice of completion and acceptance (Correct answer)
- Certificate of occupancy
Correct 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.
Question 3: A bid bond is typically set at what percentage of the bid amount?
- 1–2%
- 5–10% (Correct answer)
- 15–20%
- 25–30%
Correct 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.
Question 4: Which of the following best describes the 'unit price' method of contracting used on landscape projects?
- A fixed lump sum for the entire project scope
- Payment based on actual quantities installed multiplied by agreed unit rates (Correct answer)
- Reimbursement of actual costs plus a fixed fee
- Payment based on time and materials with no guaranteed maximum
Correct 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.
Question 5: During a pre-bid conference, an owner's representative makes a verbal clarification about the project scope. How should this clarification be handled?
- It is binding if at least three bidders heard it
- It must be confirmed in a written addendum issued to all bidders (Correct answer)
- It is valid if documented in the meeting minutes only
- It applies only to bidders present at the conference
Correct 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.
Question 6: A contractor claims that unusually severe weather delayed the project schedule. To be eligible for a time extension, the contractor must typically:
- Submit the claim within 21 days of the weather event per most standard contracts (Correct answer)
- Prove that weather was the sole cause of all delays on the project
- Demonstrate that no other concurrent delays existed during the weather period
- Show that weather conditions exceeded 100-year storm frequency
Correct 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.
Question 7: What is the typical purpose of retainage in a construction contract?
- To fund change orders without owner approval
- To incentivize early completion
- To provide the owner security against incomplete or defective work (Correct answer)
- To compensate the landscape architect for construction administration
Correct 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.
LARE LARE Bidding and Contract Administration 3
In competitive bidding, what does the term 'bid alternates' refer to?