LARE LARE Bidding and Contract Administration 3

Question 1

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

Accepted Answer

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

Answer

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?

Accepted Answer

Notice of completion and acceptance

Answer

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?

Accepted Answer

5–10%

Answer

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?

Accepted Answer

Payment based on actual quantities installed multiplied by agreed unit rates

Answer

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?

Accepted Answer

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

Answer

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

LARE Test Practice Test

LARE Test Practice Test

LARE LARE Bidding and Contract Administration 3