Chat with AIExam 6: Getting to a Contract
If a call for tenders specifically requires that certain work be subcontracted out, and that the names of subcontractors that the contractor intends to use be given in the tender, why might a contractor intentionally omit the name of the subcontractor? What are the risks of doing this?
(43) 
VerifiedA contractor may obtain quotes from the various subcontractors and then enter in a price for that item which is a bit lower than any of the quotes he has received from any of the subcontractors. This will increase the likelihood of the contractor winning the job. Then, having obtained the job, the contractor is not bound to a particular subcontractor and can negotiate with the trades and get one of the subcontractors to meet the price he stated in the tender. The risk of doing this is that the contractor's bid may be rejected by the owner as non-compliant. But if the owner uses a broad privilege clause, and is otherwise impressed by the contractor's low price and overall bid, the omission may be viewed as a technical deficiency not amounting to non-compliance. However, if the owner awards the contract to the bid-shopping contractor, the owner runs the risk of being sued by other bidders who consider the owner to have accepted a non-compliant bid.
In which of the following project delivery models is the contractor most involved throughout the entire life of the project?
(36) VerifiedC
A large private developer anticipates a complicated multi-stage residential development to be implemented over a six-year period. It is important that a good working relationship exist between the owner and the contractor because the owner wishes to have a single contractor for all stages. What type of delivery system is most appropriate for this situation?
(37) VerifiedA
What consequences result from tender documents that place risks on parties not well positioned to deal with those risks?
(39) Which of the following is good practice for an owner awarding a contract?
(39) If an owner wants to negotiate with bidders after bids have been submitted, what steps should be taken?
(35) An owner urgently wants to select a contractor. However, the project details have not been finalized. Therefore, the owner wants to have a few contractors give rough price estimates, and then enter into negotiations with one or more of them. What type of delivery system is most appropriate for this situation?
(38) An owner wants to implement a project which requires synergy between many different mechanical systems. How suitable is the construction management model of project implementation for this situation?
(35) A request for quotation may be used as a preliminary step when negotiation is anticipated.
(35) Which of the following models for project delivery would be inappropriate for a single residence project?
(40) 
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