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Bidding and Negotiation

The document discusses the bidding and negotiation phase of a construction project. It outlines the responsibilities of the architect which include assisting the owner in establishing a list of prospective contractors, preparing bid documents, responding to questions from bidders, and helping to organize pre-bid conferences. The types of bidding (open, closed, negotiated) and various insurance policies like CARI and CGLI relevant to this phase are also defined.

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Neil Henry Eya
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56 views15 pages

Bidding and Negotiation

The document discusses the bidding and negotiation phase of a construction project. It outlines the responsibilities of the architect which include assisting the owner in establishing a list of prospective contractors, preparing bid documents, responding to questions from bidders, and helping to organize pre-bid conferences. The types of bidding (open, closed, negotiated) and various insurance policies like CARI and CGLI relevant to this phase are also defined.

Uploaded by

Neil Henry Eya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Bidding &

Negotiation
Eya, Neil Henry
What is Bidding
& Negotiation
bidding & negotiation involves organizing a
bidding process, making a contractor selection,
and negotiating a construction contract.
Responsibilities of
an Architect
WHAT ARE THE SPECIFIC RESPONSIBILITIES OF THE
ARCHITECT TO THE CLIENT AT THIS PHASE OF THE
PROFESSIONAL SERVICE OF THE ARCHITECT?
Assist the owner in
Assist in establishing list Prepare the bid Respond to Helps in organizing
obtaining proposals and
of prospective documents questions from and conducting pre-
preparing construction
contractors bidders bid conferences
contracts
Bid
1. Form for contract letting

2.Documents for construction


documents
3.Forms for invitation and
instruction to bidders
4.Forms for bidder's proposals

5.General / specific conditions of


contract
Sample
Document
Bidding Invitation: Request for Proposal
Choosing and Vetting
HOW ARE PROSPECTIVE CONTRACTORS CHOSEN AND VETTED OUT?

USE PRECISE PLANNING HIRE CREDENTIALED CONTRACTORS


The best way to avoid having any After soliciting requests for quotations, make sure
outside work halt the process is to the down-selection process includes a careful
ensure that the contractor provides a evaluation of the contractor's tradesmen.
highly detailed plan of the project work
in advance.
Choosing and Vetting
HOW ARE PROSPECTIVE CONTRACTORS CHOSEN AND VETTED OUT?

SECURE THE RIGHT EQUIPMENT HAVE SAFE PRACTICES


A contractor can actually offer cost A serious accident can stop a project in its tracks
savings for building management if he or and place a project budget in peril. Checking a
she possesses equipment selected contractor's commitment to safety begins at the
with forethought and applicability to the top.
specific project.
Choosing and Vetting
HOW ARE PROSPECTIVE CONTRACTORS CHOSEN AND VETTED OUT?

CONFIRM CONTINGENCY PLANS PROVIDE CONSTANT COMMUNICATION


The contractor must outline a A conscientious contractor must be willing to
systematic process to acquire spare provide project reports up-front on a daily basis
parts on an urgent basis when the
"inevitable" emergency occurs.
Difference?
OPEN BIDDING CLOSED BIDDING NEGOTIATED
a situation in which people a system of choosing the BIDDING
offer to supply goods or best offer to supply goods or when an owner negotiates a
services at a particular price, services by asking price for services rendored
and the offers are not kept companies to offer their best with a single contractor
secret price without knowing what
the other companies are
offering
Difference?
CONSTRUCTION SURETY BOND GUARANTEE BOND
PERFORMANCE BOND risk transfer mechanism a debt security that offers a
issued to one party of a where the surety company secondary guarantee that
contract as a guarantee assures the project owner interest and principal
against the failure of the (obligee) that the contractor payments will be made by a
other party to meet (principal) will perform a third party, should the issuer
obligations specified in the contract in accordance with default due to reasons such
contract the contract documents as insolvency or bankruptcy
Contractors' all risks insurance is a
non-standard insurance policy that
What is
provides coverage for property
damage and third-party injury or
damage claims, the two primary
CARI?
CONTRACTORS' ALL RISKS INSURANCE
types of risks on construction
projects. Damage to property can
include improper construction of
structures, the damage that
happens during a renovation, and
damage to temporary work erected
on-site.
Contractor General Liability
What is
Insurance protects contractors
financially from amounts they
become obligated to pay due to
CGLI?
CONTRACTOR'S GENERAL LIABILITY
damages or medical payments
INSURANCE
because of bodily injury, property
damage or personal/advertising
injury to third parties occurring
during the policy period caused by
or relating to the contractor’s work
Summary of the Bidding
and Negotiation Phase

The Owner and the The Architect prepares Bid conferences and The Owner chooses Signing of
Architect establish the the bid documents bidding proper bidders with guidance construction
list of prospective happens from the Architect contracts with the
contractors chosen contractor
End.

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