CMGT 3500 TEST 2 ECU FALL 2025
EXAM QUESTIONS AND ANSWERS
Project award methods (types) - ANSWER--Competitive bidding: Open or selective
(can be used by both public or private owners)
-Negotiation: Mostly used in private projects, very seldom used in publicly owned
-Direct assignment: Mostly used in private projects
Advantages of Competitive Bidding - ANSWER--provides clear idea of total
construction costs
-fair to all contractors
-allows for completion and innovation to reduce price
-gives chance for new contractors with limited past experience
-shifts risk from owner to contractor
Bid Rigging - ANSWER-- is a form of fraud in which a commercial contract is
promised to one party even though for the sake of appearance several other parties
also present a bid. This form of collusion is illegal in most countries and is unethical
Elements/Components of the Bid - ANSWER--Advertisement
-invitation to bid
-instructions to bidders
Instructions/Information to Bidders (IFB) Purpose - ANSWER-- reduces the time and
effort required to review future bids
IFB prepared by whom - ANSWER-- usually prepared by an architect/engineer or
construction manager
Responsive Bid - ANSWER-This is one that meets all the terms, conditions and
specification of the bid. The bid must comply with the content requirements of the
bidding documents. The bidder must do what the bid documents say they must do.
Responsible Bid - ANSWER-This is one where the bidder has the overall capability
to satisfactorily perform the contract
3 Conditions fulfilled to grant withdrawal of bid - ANSWER-- Mistake is considerable
and of sufficient magnitude
- Mistake is not result of negligence or inexperience
- Owner does not suffer from withdrawal
VE (Value Engineering) - ANSWER-- Prescriptive process for analyzing project
components
Addenda Defined - ANSWER-- a formal change initiated by the owner of his agent
(the A/E) to the bid
EXAM QUESTIONS AND ANSWERS
Project award methods (types) - ANSWER--Competitive bidding: Open or selective
(can be used by both public or private owners)
-Negotiation: Mostly used in private projects, very seldom used in publicly owned
-Direct assignment: Mostly used in private projects
Advantages of Competitive Bidding - ANSWER--provides clear idea of total
construction costs
-fair to all contractors
-allows for completion and innovation to reduce price
-gives chance for new contractors with limited past experience
-shifts risk from owner to contractor
Bid Rigging - ANSWER-- is a form of fraud in which a commercial contract is
promised to one party even though for the sake of appearance several other parties
also present a bid. This form of collusion is illegal in most countries and is unethical
Elements/Components of the Bid - ANSWER--Advertisement
-invitation to bid
-instructions to bidders
Instructions/Information to Bidders (IFB) Purpose - ANSWER-- reduces the time and
effort required to review future bids
IFB prepared by whom - ANSWER-- usually prepared by an architect/engineer or
construction manager
Responsive Bid - ANSWER-This is one that meets all the terms, conditions and
specification of the bid. The bid must comply with the content requirements of the
bidding documents. The bidder must do what the bid documents say they must do.
Responsible Bid - ANSWER-This is one where the bidder has the overall capability
to satisfactorily perform the contract
3 Conditions fulfilled to grant withdrawal of bid - ANSWER-- Mistake is considerable
and of sufficient magnitude
- Mistake is not result of negligence or inexperience
- Owner does not suffer from withdrawal
VE (Value Engineering) - ANSWER-- Prescriptive process for analyzing project
components
Addenda Defined - ANSWER-- a formal change initiated by the owner of his agent
(the A/E) to the bid
