Bidding

Advertising and Receiving Bids

Section C-1

The Joint Committee recommends that the following principles be observed in connection with the advertising and receiving of bids:

  1. Sufficient time should be allowed for the Contractors to prepare their bids to avoid the necessity of bid date extensions.

  2. A complete set of Bid Documents including addenda, when issued, should be kept on file during the Bid Period at the local plan rooms (i.e. Pittsburgh Builders Exchange, F. W. Dodge, etc.).

  3. Bids should be received, preferably between 2:00 and 5:00 p.m., and opened immediately thereafter. Due dates should be scheduled Tuesday through Thursday, excluding legal holidays, or on days prior to or following legal holidays. Architects and/or Engineers should make an effort to clear bid dates with the local plan rooms to avoid conflicts with other projects being bid.

  4. In the absence of a public bid opening, Architects and/or Engineers should issue a complete bid tabulation to all bidders after the contract has been awarded.

  5. In a circumstance where the low bid is substantially lower than other bids, raising concern as to its validity, the Architect should notify the low bidder or the concern and allow the bidder 48 hours to reconfirm or withdraw the bid.

COMMENT: Time constraints inherent in the competitive bid process, amplify the opportunity for error which can be punitive to both the bidder and the Owner. Besides having clear documentation, Contractors should be allowed an appropriate amount of time to schedule estimating work, review documents, and clarify questions in order to submit a responsible bid. It is generally acknowledged that a fair and responsive bid is better for both the Owner and Contractor rather than recovering from bidding errors.

The bidding process, by its very nature, suggests that the low bidder will be awarded the contract. Where not constrained by governmental bidding requirements, pre-qualification of bidders and limited bid lists increase the chances of getting the best results.

Contractors appreciate public bid openings because it assures them knowledge of the bid results and reduces the opportunity for irregularities.

 

Glossary Terms for the Best Practices Guide

History of Recommendation:
Reviewed July, 2010
Revised January, 1996
Revised December, 1991
Revised April, 1987
Revised April, 1981
Reviewed February, 1975
Revised November, 1971Section

Addenda

Section C-2

Addenda are written or graphic instruments which are issued prior to execution of the Contract, to modify or to interpret the bidding documents. Addenda will become part of the Contract Documents when the Construction Contract is executed.

Each bidder should examine the bidding documents carefully and, no later than seven days prior to the date of receipt of bids, should make written request to the Architect for interpretation or correction of any ambiguity, inconsistency or error therein which the bidder may discover. Any interpretation or correction should be issued as addendum by the Architect at least four working days in advance of the date of receipt of bids.

Items in Addenda should be identified in a numbered sequence with the text arranged in the sequence of the Drawings and the Project Manual, with each drawing item identified by the sheet and detail number of the Drawing, and each item of the Project Manual by section, article and paragraph number.

If the element of time is restrictive, it is acceptable for the Architect to notify all bidders by fax or email, as long as documentation of notice to all bidders is maintained and the notice is confirmed by a written addendum.

Major addenda items affecting the bidding may require consideration of postponement of the bids.

No bidder should rely upon any interpretation or correction given by any other method.

The bid form should provide for bidder acknowledgement of receipt of Addenda, with each Addendum identified by number and date of issue.

Glossary Terms for the Best Practices Guide

History of Recommendation:
Revised July, 2010
Revised January, 1998
Revised April, 1987
Revised February, 1981
Revised February, 1975
Revised November, 1971

Alternates

Section C-3

The Joint Committee recommends that the use of alternates be discouraged. However, when it is necessary to use them, the Joint Committee recommends an alternate be clearly defined and structured as a deduct alternate whenever possible. Further, if there is more than one alternate, the alternates should be listed by priority and intended order of selection.

COMMENT: It is recognized that alternates are inserted into the Contract Documents to provide greater flexibility in meeting budget goals. When the scope of an alternate is not clearly defined, bidders are left to make assumptions about the intent and scope of the alternate. Misinterpretation by a bidder can result in a cost proposal which compromises the value of the process and the results.

The number and extent of alternates should be minimized. Time constraints inherent in the competitive bid process, amplify the opportunity for error which can be punitive to both the bidder and the Owner. It is generally acknowledged that a fair and responsive bid is better for both the Owner and the Contractor rather than recovering from a bidding error.

Glossary Terms for the Best Practices Guide

History of Recommendation:
Reviewed July, 2010
Revised March, 1995
Reviewed April, 1987
Reviewed September, 1985
Revised November, 1977
Revised March, 1975

Bidders Information Sheet

Section C-4

The Joint Committee recommends that a complete and concise Bidding Information Document be included in the Project Manual.

The Joint Committee recommends that the following information be included within this document:

1. Date and time that the bid is due noting the prevailing time and identifying the official time clock. The committee recommends that the owner confirms the time of receipt of each bid with its respective bidder.

2. Acceptable methods of bid delivery (hard copy, fax, email, dedicated website). The committee recommends against acceptance of bids via email as there is potential for message blocking or server issues that would prevent timely receipt of bids. If owner elects to receive bids via email the committee recommends confirmation of receipt.

3. Location by street address, fax number, email address or dedicated website where the bids will be accepted and the name of the intended recipient of the bid.

4. Notice of intent to open bids privately or publicly. If bids are to be opened in public, specify who may attend and provide the date, time and location.

5. List of documents required for proposal submission including numbers of copies.

6. Notice of requirement for bid security including the amount (expressed in dollars or percentage of bidder’s proposal) and the acceptable format (Bid Bond or Certified Check).

7. Date, time and location for the pre-bid conference with stipulation of mandatory attendance if applicable.

8. Notice of governing General Conditions of the Contract (with Special Conditions if applicable) and intended Form of Agreement. A copy of each should be bound within the Project Manual (following acceptable AIA reproduction practices if applicable).

9. Notice of requirement for Performance and Payment Bonds, General Liability Insurance, Builder’s Risk Insurance and other insurance.

10. Notice of requirement for permits including the name of the authority having jurisdiction in the location of construction.

11. List of other documents that are available to bidders but are not included in the Project Manual (soil report, existing drawings) and the location where these documents can be obtained or viewed.

12. Notice of goals for MWBE participation.

13. Notice of goals for LEED requirements.

14. Notice of requirement to use a specified list of subcontractors.

15. Notice of any required wage or union stipulations.

Prior to preparing the Bidding Information Document, determination should be made with the Owner whether the bid process will be by invitation or by advertisement.

The bid form should be formatted to follow industry standards which allow adequate space for the bidder to include all necessary information requested including bid prices, alternates, unit prices and acknowledgement of addenda.

The committee recommends that a copy of the Bid Form and all other documents required for the bid submission be bound in the Project Manual.

 

Glossary Terms for the Best Practices Guide

History of Recommendation:
Revised April, 2009
Revised April, 1987
Revised November, 1985
Revised March, 1975
Revised November, 1971
Revised January, 1967
Approved April, 1963

Bidding on Unclassified Excavation

Section C-5

The Joint Committee recommends that Contract Documents allow Contractors the means to be fairly compensated for Work, and to that end, favors classifying types of excavation.

COMMENTARY: The Joint Committee believes that the purpose of the bidding process is to provide a means by which the Owner can obtain comparative pricing of like products. In the ideal world, the process produces a win-win relationship between the Owner and Contractor.

Excavation work has been specified as either classified or unclassified. Unclassified excavation makes no distinction between the requirements to remove loose fill at one extreme to rock at the other extreme. The Bidder, by accepting the conditions of unclassified excavation, assumes the risk for whatever appears. Because it is impossible, even with an investigation of the subsurface conditions, to know with absolute certainty what will be encountered during excavation, it is highly likely that someone loses.

Excavation should be classified with a description of material and a definition of the effort required for removal. It is recommended that specific language be incorporated into the specifications to quantify the anticipated type of excavation to be included in the base bid and clearly define rock excavation. An example of such language is:

  1. Work, in general, consists of, but is not necessarily limited to:
    a. Bulk excavation for building pad and foundations, parking lots, access roads, sidewalks and other structures and site improvements as indicated on the Drawings.
    b. Trench excavation, backfilling, compaction, thrust blocks, and related items to complete installation of sanitary and storm sewers, natural gas piping, underground electrical service, water service, and other site utilities as indicated on the Drawings.
    i. All excavation shall be assumed to be earth (non-rock).
    ii. Bidder shall provide a unit price for rock excavation as an extra to the Contract.
    iii. Bidder shall provide a unit price for off-site disposal of unsuitable material and replacement with suitable backfill material compacted in place as an extra to the Contract.
  2. Earth excavation includes excavation of pavements and other obstructions visible on surface; underground structures, utilities, and other items indicated to be demolished and removed; together with earth and other materials encountered that are not classified as rock or unauthorized excavation.
  3. Rock Excavation:
    a. When rock is encountered within the limits of the excavation, immediately notify the Owner and Architect and do not proceed further until instructions are received and measurements made for the purpose of establishing the and volume of rock excavation.
    b. Volume of rock excavation shall be determined by the location of the “pay lines.” Pay lines shall be determined with the Owner and Architect prior to commencement of rock excavation and shall be the basis for payment. Pay lines shall be defined as:
    i. The elevation of the bottom of the foundation of the structure or the designated over-excavation below pipes, conduits, floor slabs, foundations, site amenities, etc.
    ii. The vertical side planes which will afford an adequate and safe working area between the structure wall and face of the cut.
    c. Rock excavation consists of the removal of hard igneous, metamorphic, and/or sedimentary rock which cannot be excavated without blasting or by means of a track mounted power excavator, equivalent to Caterpillar Model No. 215C LC, and rated at not less than 115 HP flywheel power and 32,000 pound drawbar pull and equipped with a short stick and a 42 inch wide, short tip radius rock bucket rated at 0.81 cubic yard (heaped) capacity, and all boulders or other detached stones each having a volume of ½ cubic yard or more. Trenches in excess of 10 feet in width and pits in excess of 30 feet in either length or width are classified as open excavation.
    d. Unit Prices, measured in place, shall be provided for:
    i. Mass cut, spoiled – over 7′-0″ wide, fractured by blasting or machine, loaded, removed, and disposed of on-site.
    ii. Mass cut, hauled – over 7′-0″ wide, fractured by blasting or machine, loaded, removed, and disposed of off-site.
    iii. Trench cut, spoiled – under 7′-0″ wide, fractured by blasting or machine, loaded, removed, and disposed of on-site.
    iv. Trench cut, hauled – under 7′-0″ wide, fractured by blasting or machine, loaded, removed, and disposed of off-site.
    v. Hand removal, spoiled – rock fractured by hand tools (i.e. pneumatic) loaded, removed, and disposed of on-site.
    vi. Hand removal, hauled – rock fractured by hand tools (i.e. pneumatic) loaded, removed, and disposed of off-site.
    e. Unit prices shall be used to calculate the net change to the contract amount by means of multiplying the volume of rock excavation determined under Section 2.b by the Unit Price determined under Section 2.g less the value of earth excavation for this volume already included in the contract.
  4. Unsuitable Material:
    a. Materials unsuitable to be used for fill include:
    i. Unsatisfactory Soils: ASTM D 2487 soil classification groups GC, SC, ML, MH, CL, CH, OL, OH, and PT, or a combination of these group symbols.
    ii. Expansive clay or carbonaceous soils.
    iii. Materials such as coal ash, wood chips, stumps, branches, boughs, or construction and demolition debris.
    iv. Satisfactory soils not maintained within 2 percent of optimum moisture content at time of compaction.

It is recommendation of this Committee that all project budgets have a contingency included in anticipation of excavation of unsuitable material.

Users are directed to AIA/MBA Joint Committee Best Practices Guide C-7: “Investigation of Soil and Sub-Surface Conditions” for related information regarding excavation and D-6: “Unit Prices” for related information regarding cost control of excavation.

Glossary Terms for the Best Practices Guide

History of Recommendation:
Revised October, 2008
Revised May, 1996
Revised April, 1987
Reviewed February, 1986
Revised February, 1976
Revised November, 1971
Reviewed January, 1967

Substitutions

Section C-6

The Joint Committee recommends that the contract documents clearly indicate the products used for basis of design. The Joint Committee further recommends that when alternative products would be acceptable for use, those products should be listed by manufacturer and should include product model numbers and/or names.

If the contract documents allow for substitutions to be part of the bidding process, there should be clear language that outlines the procedure for submission, the time required prior to bid for a substitution to be properly evaluated, and the criteria that will be used to evaluate the substitution. An addendum should be issued by the Architect which indicates that the requested substitution is acceptable for use under the terms of the contract documents.

Substitutions after the bid date are to be considered Value Engineering and should abide by the Value Engineering recommendations made by the Joint Committee.

The use of terms such as “or equal” and “or approved equal” is discouraged without clear indication of what the architect would consider to be an equal product.

 

Glossary Terms for the Best Practices Guide

History of Recommendation:
Approved June, 2010

Investigation of Soil and Sub-Surface Conditions

Section C-7

The Joint Committee recommends that, prior to bidding, Owners obtain the services of a geotechnical engineer to investigate subsurface conditions. The extent of the investigation should assure that the geo-technical data and bearing capacity tests necessary to make foundation recommendations are secured for the building site. The geotechnical report should also address areas of major excavation and grading required to support site utilities and significant site amenities. Areas of excavation which will be unsuitable for reuse as fill, areas of rock excavation, and anticipated groundwater levels should be delineated in the report.

The full geo-technical report including data pertinent to the sub-surface conditions and foundation design recommendations should be made available to Bidders. It is recommended that the geo-technical report, including design recommendations of the geotechnical engineer, be included as part of the Contract Documents, not simply attached ‘For Information Only’. The design professional should follow the recommendations of the geotechnical engineer in execution of the Contract Documents or provide alternative design criteria used instead as an amendment to the geotechnical report. Further, we recommend that the contract documents require monitoring and testing by a geotechnical engineer during construction to confirm suitable bearing conditions and compliance with the recommendations. And, in addition, if the recommendations of the geotechnical engineer requires the evaluation of qualitative rather than quantitative performance criteria to determine compliance, we recommend that the construction monitoring and testing services be contracted directly with the owner.

COMMENT: It is possible for a project to be completed without conducting a subsurface investigation. It is however, considered good and prudent practice to review subsurface conditions to insure that proper bearing capacity can be developed to carry the anticipated loads of the structure, as well as the suitability of the material upon which the structure will bear. Neither the Architect nor the Contractor has the expertise to evaluate subsurface conditions and, therefore, they rely on the recommendations of the geo-technical engineer. A contract with the Owner establishes an independent, non-conflicting evaluation of the sufficiency and quality of the work completed by the Contractor

By making the geo-technical report available to the Contractor during bidding, the Contractor can develop reliable costs based upon conditions that will be encountered during construction. If such information is not available, the Contractor may qualify or adjust their bid to reflect the added risk associated with respect to the unknown sub-surface conditions. Consideration needs to be given to a time extension of the excavation schedule, and overall construction schedule, if rock or unsuitable subsurface soils not identified before the award of Contract are encountered during the course of the work.

Users are directed to AIA-MBA Joint Committee Best Practices Guide Section C-5: “Bidding on Unclassified Excavation” for related information regarding excavation.

Users are directed to AIA-MBA Joint Committee Best Practices Guide Section D-6: “Unit Prices” for related information regarding cost control of excavation.

 

Glossary Terms for the Best Practices Guide

History of Recommendation:
Revised October, 2008
Revised January, 1996
Revised April, 1987
Reviewed September, 1981
Revised February, 1976
Revised November, 1971
Approved May 4, 1970

Listing Subcontractors

Section C-8

Owners often wish to know what Subcontractors/ Suppliers a General Contractor intends to engage to assess their qualifications. Asking for these names at the same time as the bid is due is contrary to the procedures established in the AIA General Conditions. In accordance with the AIA General Conditions, when a Subcontractor list is required, the apparent low bidder should be allowed to submit their list after bids have been received by the Owner. This allows the Bidder to carefully analyze the Subcontractor’s and Supplier’s bids to determine the accuracy and scope of the bid.

Upon reviewing the proposed list, the Owner should have the option of requesting changes to the Subcontractors. If an Owner’s suggested Subcontractor’s price is more than the General Contractor’s listed Subcontractor, the Owner should be willing to pay the cost difference.

Glossary Terms for the Best Practices Guide

History of Recommendation:
Approved April, 2010

Contract Documents

Section C-9

The Joint Committee recommends that prior to the award of the contract, the Architect make available a revised set of contract documents which incorporates all changes to those documents resulting from bulletins, addenda, and all accepted alternates, issued prior to the contract date. These documents will be used as the basis for the contract and as the signature set, if required. The Supplementary General Conditions should state if this service will be provided.

The Joint Committee further recommends that when any drawing or specification page is issued to replace an existing page, all changes should be clearly indicated to identify the affected area. A key to indicate the date of the change should also be included in the document.

 

Glossary Terms for the Best Practices Guide

History of Recommendation:
Reviewed July, 2010
Approved March, 1988