CIVL202 Construction Engineering I Tutorial 2 T1Mon11:00 – 11:50 T2Wed09:00 – 09:50

Tutorial Outline Notice to Bidders Bid Package Proposal Form Contract Price General Conditions Supplementary Conditions Technical Specifications Addenda Contractor’s decision to bid Prequalifications Subcontractors Bid Bond

Notice to Bidder Definition: announcement that the design document are available and bids are ready to receive It includes: general type, size, plans and specifications, time, place date of bid opening

Bid Package Things to be included: Proposal form General conditions: based on similar type of project Specific conditions: different with projects Technical specification Plans and drawings

Proposal Form Definition: it indicates contractor’s intention to enter into contract to complete specific work at specified price Contract price: lump sum and unit price

Contract price Lump sum: the amount of money the client is willing to pay for certain construction item Unit price: the price of every unit of material/construction price of a particular item

General Conditions Defining the rights, privileges and responsibilities of different parties (contractor, client and designer) Enforced by law

Supplementary Conditions / Specific Conditions Unique in particular project Changes to general conditions

Technical Specification Description of the technical requirements Related to quality of different components of work Stating specific brand or model of material or equipment

Addenda Stating the changes in details of contract, additions, corrections and contract conditions

Contractor’s decision to bid Quantity takeoff: determining the required material quantities on a job Example in lecture: Assume the contractor would like to bid for four project, cost of bidding each project = $50,000 if the contractor could get one bid, the profit it would earn in the project should cover the entire bidding cost ($200,000)

Prequalification Client’s judgment on whether the contractor is capable or not, it is based on the history of the contractor on similar project If the contractor is not capable to complete project, even the bid price is low, the client will not consider

Subcontractors The cost of work done by sub- contractor as well as the work done by the prime contractor will be included in the bid price The prime contractor will integrate the quotation of construction cost into the total bid price

Bid Bond Definition: to protect the clients from the failure of the contractor to start the project Example in lecture: Assume there are four bidders, Bidder 12.0M 21.8M 31.6M 41.5M

Condition: bidder 4 refused to accept the contract, bidder 3 will be chosen. In the bid price, it includes the price of bid bond(20% of the bid price) and the price of hiring the bonding company(0.5 – 3% of the bid price) If bidder fails to start the project Damage to the client = 1.6M – 1.5M = 0.1M the bonding company will have to pay for the bid bond But afterwards, the contractor will have to pay the bonding company back the amount of bid-bond