Term
| what are 2 ways that contracts can be established between the owner and contractor |
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Definition
| with a negotiated contract and with a bid contract |
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Term
| what is a negotiated contract |
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Definition
| the owner selects the contractor and then negotiate price and other terms of their agreement. |
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Term
| what is a bid contract (called tendered in Canada) |
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Definition
| the drawings and specifications are completed by the ID (and others if necessary) & then sent to several GC's who bid on the work define by the CD's. The owner can then select the contractor based on cost as well as experience, schedule and other criteria. |
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Term
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Definition
| a set amount of money estimated by the ID to cover a particular material or piece of equipment when the cost for that material or equipment cannot be determined precisely at the time of the bid or negotiated proposal |
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Term
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Definition
| set costs for certain portions of the work based on individual quantities, such as linear feet or square yards of installed material |
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Term
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Definition
| a request included in the bidding doc's asking the contractor to supply a price for some type of variation from the base bid |
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Term
| what are 2 types of alternates |
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Definition
| add-alternates if they add to the base bid or deduct alternates if they deduct from the base bid |
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Term
| what is a labor and material payment bond |
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Definition
| it protects the owner against both types of problems - labor and materials not being paid for |
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Term
| what is a performance bond |
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Definition
| ensures the completion of the contract by a surety company should the contractor default |
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Term
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Definition
| used to ensure that the successful bidder will enter into a contract with the owner. the amount of the bid security is set either as a fixed price or as a percentage of the bid; it is usually about 5% of the estimated cost fo the work or of the bid price |
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Term
which document briefly describes the project, states where the project documents can be secured, and describes the bidding procedures?
a. addenda
b. instructions to bidders
c. invitation to tender
d. forms of agreements |
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Definition
| c. informs bidders of all information listed above, also called advertisement for bids |
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