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23 Cards in this Set
- Front
- Back
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What are some differences between Public and Private Bidding?
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Public - allows larger number of bidders to bid; owners need to publicly advertise for bidders in newspaper
Private - by invitation, pre-qualifications may be necessary |
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What is and unbalanced bid? What's its purpose?
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An unbalanced bid is one which each bid item is not priced to carry its share of the cost of the work.
Purpose of unbalanced bids - to discourage certain type of construction/material contractor believes estimated quantities for certain items are low - get more money, eliminate early financial squeeze |
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What problems can arise from competitive bidding?
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- illegal and unethical practices
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List two important details that must be handled during tendering.
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- After advertising for bids, keep an accurate log of all sets of contract documents issued
- Whenever changes are required, an addenda is sent to each bidder via registered mail or personal delivery |
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What could happen to you if you don't handle the issuance of bid documents properly?
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May result in serious legal claims and project delays.
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What is the difference between bonding and insurance?
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Insurance involves the levying of premiums on statistically anticipated losses which it is known will occur.
Bonding is aimed at having no losses and the premium charged is actually a fee for the credit service provided by the bond. |
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What is a bond?
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Written undertaking that protects an owner against loss resulting from his having signed contract with the Contractor.
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True or False: A bond cannot make up for the deficiencies of an improperly or inadequately drawn up Contract which does not clearly express the intentions of the parties.
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True.
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True or False: A bond is the same thing as insurance.
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False.
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Name 5 types of bonds in the Construction Contract Bond category.
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1) Bid bond
2) Consent of Surety 3) Performance Bond 4) Payment Bond 5) Maintenance Bond |
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What type of bond guarantees upkeep/maintenance throughout Maintenance period?
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Maintenance Bond
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Which is NOT true of a bid bond?
A) Form of insurance for owner B) Surety obligated to pay Owner if Contractor fails to comply with Contract C) Returned to Contractor after signed Contract D) Supplied by Surety company for nominal fee |
B) Surety of obligated to pay Owner if Contractor fails to comply with Contract - This applies to a Performance Bond.
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Which type of bond protects the owner against Liens and claims from subs and suppliers?
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Payment Bonds
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True or False?
A performance bond guarantees trouble-free projects. |
False, only protects against additional expenses.
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What is a Consent of Surety?
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Firm commitment by the Bonding Company that if the Contractor's tender is successful, a final bond or bonds will be furnished by that Bonding Company.
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What are the six "C's" for construction contract bonding?
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1) Character
2) Capacity 3) Cash 4) Contract 5) Coverage 6) Completion |
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Why do we need documentation? Why records?
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We need records to retain credibility. They may be used in claims as evidence.
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What kinds of files would be made during the Construction phase of a project?
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- inspection reports
- quality/materials testing - daily construction reports - shop drawings - photos |
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What is a daily diary?
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Daily Diary is a personal journal. Record of telephone calls made or received with outline, purpose, parties, and statements. Record any material or work that doesn't conform to specs. Note extra work performed. Sign it.
Kept in a hard-cover, stitched binding. NEVER ERASE! Reported daily. |
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How is a daily construction report different from a daily diary?
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Daily Construction Reports only include items like project, client, contractor's names, date, weather, work description, identifying size of equipment, status of current work. Short detailed information.
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What are some responsibilities of an inspector while setting up a field office?
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- Familiar with Contract Documents
- Equipment & Furniture - Ordering supplies - Establish communications - inspection plans |
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What sorts of contract documents must an inspector be familiar with?
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- Contract drawings
- agreements - specifications - references - testing requirements |
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On whose tab (expense) is this field office for which the inspector must set up?
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Contractor
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