Transcript CIVL202 Construction Engineering I Tutorial 2

CIVL202
Construction
Engineering I
Tutorial 2
T1
Mon
T2
Wed
11:00 – 11:50
09:00 – 09:50
Tutorial Outline
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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
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Bid Package
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Things to be included:
Proposal form
 General conditions: based on similar
type of project
 Specific conditions: different with
projects
 Technical specification
 Plans and drawings
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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
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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
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General Conditions
Defining the rights, privileges and
responsibilities of different parties
(contractor, client and designer)
 Enforced by law
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Supplementary Conditions /
Specific Conditions
Unique in particular project
 Changes to general conditions
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Technical Specification
Description of the technical
requirements
 Related to quality of different
components of work
 Stating specific brand or model of
material or equipment
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Addenda
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Stating the changes in details of
contract, additions, corrections and
contract conditions
Contractor’s decision to bid
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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
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Subcontractors
The cost of work done by subcontractor 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
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Bid Bond
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Definition: to protect the clients from the
failure of the contractor to start the project
Example in lecture:
Assume there are four bidders,
Bidder
1
2.0M
2
1.8M
3
1.6M
4
1.5M
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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