CIVL202 Construction Engineering I

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CIVL202Construction Engineering I

• Tutorial 2
• T1 Mon 1100 1150
• T2 Wed 0900 0950

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Tutorial Outline

• Notice to Bidders
• Bid Package
• Proposal Form
• Contract Price
• General Conditions
• Supplementary Conditions
• Technical Specifications
• Addenda
• Contractors decision to bid
• Prequalifications
• Subcontractors
• Bid Bond

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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

• 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 contractors 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

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

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Contractors 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)

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Prequalification

• Clients 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 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

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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 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