CMGT 3500 Exam 2 Review Questions And Answers Rated 100%!!!

What are the three project award methods? - ANS competitive bidding, negotiation, direct assignment Where is competitive bidding used? - ANS federal or state and local projects, publicly financed Where is negotiation/direct assignment used? - ANS private government What are the advantages of competitive bidding? - ANS fair to all contractors, allows competition and innovation to reduce price, allows new contractors a chance to enter the market What is negotiated bidding? - ANS selective pool of experienced and trustworthy contractors, looks at factors other than cost. Has a shorter period of time for bid evaluations What is bid rigging? - ANS form of fraud which can turn into collusion and jail time, illegal, tied to price fixing and market allocation What are the elements of the bid? - ANS advertisement for bid (used on public projects), invitation to bid (private projects), instructions for bidders (AIA) What does IFB stand for? - ANS Instructions to/for bidders What are instructions for bidders used for? - ANS Used to distribute uniformed information to all bidders, ensures uniformity and responsiveness, lets you know if bid bond is required through a bank or surety company, also shows the withdrawal process. What is competitive bidding? - ANS oldest and most commonly used for contractor selection. Lowest responsive responsible bidder wins What is a responsible bid? - ANS meets all terms and conditions of bid and instructions to bidder. Complies with contract documents with no deviation. What are bid changes? - ANS owner approved reasons for change will result in return of bid bond. Failure to follow owner instructions will result in bond revocation. When can you withdraw a bid? - ANS mistake must be considerable and of sufficient magnitude, not of negligence or inexperience. Owner does not suffer from withdrawal of bid What is low bidder determination? - ANS when the total bid price is considered for lump sum bids What is equivalent lump sum? - ANS associated with unit pricing, offers a maximum bid price What is an addenda? - ANS Addenda is a formal change initiated by owner or agent to the bid requirements, documents, conditions, or scope during the bidding process. All bidders will get copy of addenda. Issued for correction of error or discrepancies in specifications. Corrected with updated and revised versions. Could also be owner change When is a change order used? - ANS can only be used during the project What are the two major components of a contract document? - ANS project manual and drawings What does the project manual contain? - ANS invitation to bid, instruction to bidders, bid forms, general conditions of contract, general requirements of contract, technical specs divisions 2-49 of CSI What are the three phases of drawing development? - ANS diagram of functional relationships (DFR), working drawings, shop drawings