The Bid Package Part III

1. The Bid Package Part III

2. Components Of A Specification • Specifications are divided into three major sections (with subsections ) as follows : • Bidding and Contractual Documents • Conditions of the Contract • Detail (technical) Specifications

3. Specification Part 1: The Bidding and Contractual Documents • Invitation to Bid • Instruction to Bidders • Proposal Forms • Proposal • Bid Sheets • Contractor Certificates • List of Subs • Bid Bond Form • Non-Collusion Affidavits • Agreement (Contract) • Performance Bond Form • Payment Bond Form

4. Specification Part 2: General Conditions/Special ConditionsASCE Standard Construction Documents:“Boilerplate Documents” • The Engineers Joint Contract Documents Committee (EJCDC) develops and updates fair and objective standard construction documents. • We will review the ASCE documents in this course, but AIA documents are similar. • EJCDC is affiliated with ASCE • Documents represent latest thinking in contractual relations in engineering design and construction projects

5. The AIA Documents • The American Institute of Architects also provides “boilerplate documents” for a fee. • These are commonly accepted documents and endorsed by AGC. • AIA Contract Documents comprise over 80 forms and contracts • Define relationships and terms involved in design and construction projects • Prepared by the AIA with the consensus of owners, contractors, attorneys, architects, engineers • The documents are now widely recognized as the industry standard. • http://www.aia.org/

6. Part 3: Technical Specifications • Although the drawings define the job visually: • geometry, dimensions and physical details of the project, • The technical specifications define the administrative and quality requirements of the project • spell out administration of the project • complement the drawings by defining materials, workmanship and procedures • meant to be used throughout the project

7. Detail (Technical) Specifications • Technical sections cover various parts of the project: • Workmanship, materials, methods • The Construction Specifications Institute (CSI) has developed standard “numeric codes” for work. • These numeric codes are used in specification writing. • CSI Codes are on course website.

8. What If There are Conflicts Between Drawings and Specifications? • Unless noted otherwise, the specifications govern. • Therefore, specifications are the single most important project document. • They should be well known by the project administrator.

9. Development of The Company Technical Spec • Each engineering/architectural firm will develop their own technical specification. • These are based on experience, industry standards & design expertise

10. What Happens When Specifications are Not Well Written? Scope of Work Disputes! • For Example: • small projects = small budgets • lack of sufficient detail • Outcome: • Work is not within expectations of the owner

11. HOW CAN WE AVOID SCOPE OF WORK DISCREPENCIES IN SPECIFICATION WRITING? • Allow adequate budget for drafting of specifications • Control of specification development should be the responsibility of one qualified person in the company • Specifications for each job should be developed from “master specification document” • “Master specification” updated annually to be sure it is current with industry standards

12. Generalities Should Be Avoided • Some phrases in specifications and drawings can make an item “unbiddable” due to complete vagueness. • These “unenforcable phrases” should be avoided in specification writing: • To the satisfaction of the engineer • As determined by the engineer • In accordance with best standard practice • As required by the engineer • Workmanship shall be of the highest quality

13. Other Contract Documents: Addenda • Changes to project AFTER job has been put out for bid and BEFORE bid is awarded are incorporated through Addenda. • Rapid communication to bidders is critical. • Delivery is documented to protect the bidding process.

14. Other Contract Documents: Bonds What is a Bond? • A bond is a 3-way contractual relationship: • Obligee (owner of the project) • Principal (contractor) • Surety (bonding company) • A bond protects the owner against default of the contractor • The surety provides protection in case of contractor’s default

15. Protects owner against damage if contractor fails to enter Contract. Ie, contractor realizes the job is underbid and would take a financial loss--does not want perform work or enter into contract Bond would pay owner the $$ cost difference between initial & next lowest bid Required face value of bond is given in the Instructions to Bidders Government jobs often require a bid bond that is 10% of the bid price. Bid Bond

16. Performance Bond • If contractor is awarded the job a performance bond is required • Guarantees the completion of the project in accordance with contract documents (plans, drawings & specifications) • Bond must be delivered to owner at time of signing of contract • Who’s protected? • Owner • Lending Institution

17. What if Contractor Defaults? • Bonding company may assist contractor by providing short-term financing. • Bonding company may take over job and attempt to take it to completion. • All costs are paid up to the face value of the bond.

18. Maintenance Bond • Bond purchased by contractor • Protects the owner of a completed construction project for a specified time period against defects and faults in materials, workmanship and design that could arise later if the project was done incorrectly • Assures contractor will either correct any defects that arise or that the owner is compensated for those defects

19. Payment Bond • Protects owner from liens (mechanic’s liens) against project due to nonpayment of subcontractors and material suppliers by contractor. • Surety (bond) will pay outstanding debts

20. Legal Bond Obligations of the Contractor (Principal) • Contractor is required to pay surety for any loss as a result of the bond • Contractor may be required to sign agreement allowing seizure of personal assets in event of default (if assessed as a high risk)