Professional Documents
Culture Documents
Bidding Process
Bidding Process
Bidding Process
Topic Outline
1. Notice to Bidders
2. Bid Package
3. General Conditions
4. Supplementary Conditions
5. Technical Specifications
6. Addenda
Topic Outline
7. Decision to Bid
8. Prequalification
9. Subcontractor and Vendor Quotations/Contracts
10.Bid Bond
11.Performance and Payments Bonds
12.Cost and Requirements for Bonds
Notice to Bidders
This document announces to prospective bidders that design
documents are available for consideration and that the owner is
ready to receive bids.
6. Owner’s responsibilities
7. Engineer’s responsibilities
8. Changes in the work
9. Change of contract price
10.Change of contract times
General Conditions
Some topics that are typically considered in the general
conditions are listed below:
The key to this entire process is the fact that these predictions
are made based on past experiences and the ability of the
estimator to sense potential trouble spots that will affect field
cost.
Decision to Bid
The accuracy of the result is a direct function of the skill of the
estimator and the accuracy and suitability of the method by
which these past experiences were recorded.
Given that the estimate is the basis for determining the bid
price of a project, it is important that the estimate be carefully
prepared.
Decision to Bid
Studies reveal the fact that the most frequent causes of
contractor failure are incorrect and unrealistic estimating and
bidding practices.
Decision to Bid
The quantities of materials must be developed from the
drawings by an expert in quantity takeoff.
They then add to the totaled project direct costs those indirect costs
that cannot be assigned directly to a particular estimating item
(project supervising costs).
In effect, the owner asks the firm to submit its “resume” for
consideration.
The contractor does not prepare a bid and incur the inherent cost
unless he can qualify.
On the other hand, the owner does not find herself in the position of
being under pressure to accept a low bid from a firm she feels
cannot perform the work.
The contractor integrates these quotations into the total bid price.
Following the awarding of the contract, the prime contractor has his
purchasing or procurement group move immediately to establish
subcontracts with the appropriate specialty firms. B
BID BOND
The concept of a bond allows one
party to protect itself against default
in a relationship with a second party.