CIVL202Construction Engineering ITutorial 2

T1 Mon 11:00 – 11:50

T2 Wed 09:00 – 09:50

Tutorial Outline

Notice to Bidders Bid Package Proposal Form Contract Price General Conditions Supplementary Conditions Technical Specifications Addenda Contractor’s decision to bid Prequalifications Subcontractors Bid Bond

Notice to Bidder

Definition: announcement that the design document are available and bids are ready to receive

It includes: general type, size, plans and specifications, time, place date of bid opening

Bid Package

Things to be included:Proposal formGeneral conditions: based on similar

type of projectSpecific conditions: different with

projectsTechnical specificationPlans and drawings

Proposal Form

Definition: it indicates contractor’s intention to enter into contract to complete specific work at specified price

Contract price: lump sum and unit price

Contract price

Lump sum: the amount of money the client is willing to pay for certain construction item

Unit price: the price of every unit of material/construction price of a particular item

General Conditions

Defining the rights, privileges and responsibilities of different parties (contractor, client and designer)

Enforced by law

Supplementary Conditions / Specific Conditions

Unique in particular project Changes to general conditions

Technical Specification

Description of the technical requirements

Related to quality of different components of work

Stating specific brand or model of material or equipment

Addenda

Stating the changes in details of contract, additions, corrections and contract conditions

Contractor’s decision to bid

Quantity takeoff: determining the required material quantities on a job

Example in lecture:

Assume the contractor would like to bid for four project,

cost of bidding each project = $50,000

if the contractor could get one bid, the profit it would earn in the project should cover the entire bidding cost ($200,000)

Prequalification

Client’s judgment on whether the contractor is capable or not, it is based on the history of the contractor on similar project

If the contractor is not capable to complete project, even the bid price is low, the client will not consider

Subcontractors

The cost of work done by sub-contractor as well as the work done by the prime contractor will be included in the bid price

The prime contractor will integrate the quotation of construction cost into the total bid price

Bid Bond

Definition: to protect the clients from the failure of the contractor to start the project

Example in lecture:

Assume there are four bidders,

Bidder 1 2.0M

2 1.8M

3 1.6M

4 1.5M

Condition: bidder 4 refused to accept the contract, bidder 3 will be chosen.

In the bid price, it includes the price of bid bond(20% of the bid price) and the price of hiring the bonding company(0.5 – 3% of the bid price)

If bidder fails to start the project

Damage to the client = 1.6M – 1.5M = 0.1M

the bonding company will have to pay for the bid bond

But afterwards, the contractor will have to pay the bonding company back the amount of bid-bond