PREPARING

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CHAPTER - 2

• PREPARING
• THE
• BID PACKAGE

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ONLINE PLAN ROOM

• The Need
• Plan rooms Conveniently located
• Facilities provide access to bidding documents
• The Technology
• Online plan rooms members view projects 24
  hours
• Internet access

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2.1 PROJECT CONCEPT AND NEED

• Schematic flow diagram step-by-step project
  development
• This approach requires full set of project
  documents
• This is for bid and for public projects

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2.2 ESTABLISHING NEED

• First step in need and concepts
• Economic Basis for any project
• Construction of a chemical plan in spain
• Hotel in Phoenix, AZ
• Public and Community Service Projects

2.3 FORMAL NEED EVALUATION

• To decide to proceed or not three items
  developed
• Cost/Benefit analysis
• Rendering and a layout desgin
• Cost estimate based on concepts

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2.4 CONCEPTUAL DRAWINGS AND ESTIMATES

• Seeking funding concepts, plans and estimates
• Government projects budget requests from the
  President to congress
• ENR Indexes

2.5 PRELIMINARY AND DETAIL DESIGN

• Concept approval A/E retained to do DD
• Production of plans and specs Two steps
• Preliminary Design 30 40 completion pause
• Final or Detail Design
• A/E procedures Owners Estimate ( 3 accuracy)
• Ensure design with in budget
• To evaluate contractors bid

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COST INDEXS
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Project Proposal Layout Sketch and outline
Specifications
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Current Working Estimate for Budget Purposes
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2.6 NOTICE TO BIDDERS

• A/E office
• Plan rooms
• Builders exchange publish news letters
• Dodge Reporting System

2.7 BID PACKAGE (prepared by A/E)

• A proposal form
• General Conditions common to all construction
  contracts
• Special or Supplementary Conditions procedure
  unique to the project
• Technical Specs, Plans and Drawings
• Proposal form states begin within 10 c.d after
  receipt of NTP.
• Award of contract - notified through NTP
• Response by the owner to the contractors
  proposal establishes a legal binding contractual
  relationship.

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Figure 2.8
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2.8 GENERAL CONDITIONS

• Contract Administration and relationships
• Standard set of stipulations that establish
  procedures
• The set of provisions is called General
  Conditions
• Rights, privileges and responsibilities
• Selection to the Owner, A/E, GC and subs are in
  the General Conditions

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2.9 SUPPLEMENTARY CONDITIONS

• Contractual relationship to a given project.

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2.10 TECHNICAL SPECIFICATIONS

• Verbal description of technical requirements
• Standards of workmanship and material standards
• Reference to an accepted practice or quality
  specs
• Sections

2.11 ADDENDA

• Any changes in detail, additions, corrections,
  and contract conditions that arise before bids
  are opened.
• To be incorporated into the bid package for
  bidding through addenda.

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2.12 DECISION TO BID

• Investigate place and specs and decide to bid
• Estimating
• Quantity takeoff
• Estimate direct cost (Materials Labor
  Equipment
• Add indirect costs (Supervising Costs)
• Add overhead, contingencies and profit
• Rule of thumb, contractors estimating cost is
  0.25 of the bid price.

2.13 PREQUALIFICATIONS

• Firms expertise and capability

2.14 SUBCONTRACTOR AND VENDOR QUOTATIONS/CONTRACT
S

• GC solicit quotations from specialty subs (elec.
  Work, roofing, etc.)
• Quotations taken telephonically
• GC integrates these quotations into the bid price

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2.15 BID BONDS

• Various defaults between owner and GC
• Concept of Bid Bond
• Third party, Surety protects
• Bond is referred to as a 3 party relationship
• During bidding owner requires a bid security

Figure 2.12
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2.16 PERFORMANCE AND PAYMENT BONDS

• Performance Bonds protect the owner not
  completing project per contract
• Payment Bonds protect the owner if GC does not
  pay their subs.
• Government Contract Bid Bonds 20 of the bid
  price
• Private Contract Bid Bonds 5 10 of the bid
  price
• The Miller Act (1935)
• Performance Bond Must br 100 of the contract
  amount
• Payment Bond Required per sliding scale