CMGT 3500 Test 2 ECU Fall Exam Questions And Answers

Project award methods (types) - ANS -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 - ANS -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 - ANS - 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 - ANS -Advertisement -invitation to bid -instructions to bidders Instructions/Information to Bidders (IFB) Purpose - ANS - reduces the time and effort required to review future bids IFB prepared by whom - ANS - usually prepared by an architect/engineer or construction manager Responsive Bid - ANS 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 - ANS This is one where the bidder has the overall capability to satisfactorily perform the contract 3 Conditions fulfilled to grant withdrawal of bid - ANS - Mistake is considerable and of sufficient magnitude - Mistake is not result of negligence or inexperience - Owner does not suffer from withdrawal VE (Value Engineering) - ANS - Prescriptive process for analyzing project components Addenda Defined - ANS - a formal change initiated by the owner of his agent (the A/E) to the bid Reasons for Issuing Addenda - ANS - Making owner initiated changes - Correction of errors or discrepancies in specs. Errors in drawings are corrected through an updated revision of the drawings. - Additions, deletions, or modification of products to include. Two Major Physical Components of the Contract Documents - ANS - project manual - drawings Project Manual - ANS - Supplementary conditions to the contract - Additional information to bidders (soil reports) - General requirements (division 1) - Technical specifications (division 2-49) Drawings (Working/Shop) - ANS Working: - second cycle of design development - used to obtain proper permits Shop: - serves as a guide for fabrication and installation - third cycle of design development AIA/AGC - ANS AIA: American Institute of Architects AGC: Associated General Contractors General Conditions of the Contract - ANS - purpose is to spell out contract conditions by defining roles, duties, responsibilities - usually prepared by an attorney or legal professional