Bid Preparation & Submission Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bid Preparation & Submission flashcards as text
What is the purpose of a 'bid security' in the construction bidding process?
Answer: To compensate the owner if the low bidder fails to execute the contract
Bid security (typically a bid bond or certified check) protects the owner from losses if the apparent low bidder refuses to execute the contract after award.
When a public agency issues a 'request for qualifications' (RFQ) before the RFP or ITB, the purpose is to:
Answer: Pre-screen and shortlist contractors based on experience and capability before requesting bids
An RFQ pre-qualifies contractors based on financial strength, relevant experience, and key personnel before inviting them to submit detailed bids or proposals.
Which type of contract places the greatest financial risk on the contractor for quantity variations?
Answer: Lump sum contract
In a lump sum contract, the contractor is paid a fixed amount regardless of actual quantities, so overruns in material or labor quantities reduce the contractor's profit.
What is the role of the 'Instructions to Bidders' document in a bid package?
Answer: It explains submission requirements, deadlines, format, and procedures bidders must follow
Instructions to Bidders is a procedural document detailing how, when, and where to submit bids, and what forms must be included.
A contractor discovers a significant discrepancy between the drawings and specifications during the bid period. The best action is to:
Answer: Submit a Request for Information (RFI) or question at the pre-bid conference for an official clarification
Submitting an RFI or raising the issue at the pre-bid conference ensures all bidders receive the same clarification through an addendum, protecting the contractor and ensuring a fair process.
In competitive bidding, 'apparent low bidder' means:
Answer: The bidder with the lowest price based on initial reading before formal review
The apparent low bidder is the contractor with the lowest submitted price pending verification of responsiveness, responsibility, and arithmetic accuracy.
What is the primary reason estimators use historical cost data when preparing bids?
Answer: To benchmark current estimates against past project actuals and improve accuracy
Historical cost data from completed projects provides a reality check on current estimates and helps identify areas where pricing may be too high or too low.