Deck 13: Pricing Subcontractors Work

Question 1

On some publicly funded projects, the general contractor may be required by government regulations to award a certain percentage of the work to women-owned and minority-owned businesses.

Answer 1

True

Question 2

A subtrade ____ would give the prime contractor the right to damages from the bonding company in the event that a subtrade fails to execute the subcontract after its bid has been properly accepted by the prime contractor.

A)bid bond
B)fixed bond
C)surety bond
D)performance bond

Answer 2

A

Question 3

When a bid proposal has been obtained from a subtrade, it should list inclusions that detail all the work that the bidder is offering to do for the price quoted.

Answer 3

True

Question 4

The estimator's task becomes far more complicated when subtrades attach ____ to their bids.

A)restrictions
B)conditions
C)bonds
D)requirements

Question 5

In an effort to manage the risk of a nonperforming prime contractor, the owner often requires the prime contractor to obtain surety bonds to guarantee contract performance.

Question 6

Most contractors maintain a directory of the subtrades they prefer to deal with.

Question 7

Subcontractors often perform ____% or more of the work on building construction projects.

A)65
B)70
C)75
D)80

Question 8

Under the terms of the contract it has with the owner, the prime contractor is always held responsible for the performance of the work, excluding the performance of the work done by subcontractors.

Question 9

When investigating the financial condition of a subtrade, a useful source of information can be ____.

A)bonding companies
B)former clients
C)the federal government trades financial database
D)credit reporting agencies

Question 10

The ___________ outlines for the contractor's estimator the terms of the subtrade bid in good time before the subtrade releases its price at the last minute.

A)bid depository
B)pre-bid subtrade proposal
C)bid shopping proposal
D)performance bond

Question 11

____ require subtrades to submit their bids at a specified time usually two days before the prime bids are due to be submitted.

A)Bid escrows
B)Bid devices
C)Bid depositories
D)Bid collaborators

Question 12

On some publicly funded projects, there may be an official local preference policy stipulating that businesses established in a defined geographical area be given preference in contract awards in which their bids are within a certain percentage of the price of "outside" subcontractors.

Question 13

"Bid shopping" or "bid peddling" is illegal.

Question 14

Subtrades are allowed to change their bids after the subtrade bid closing time.

Question 15

Subcontractors often perform 50% or more of the work on building construction projects.

Question 16

Most ____ are items of work that, by standard practice, are always omitted from the work scope of the trade.

A)restrictions
B)exclusions
C)specifications
D)conditions

Question 17

Bid depositories are used for all of the following reasons EXCEPT to ________.

A)outline the terms of the subtrade bid
B)combat the practice of "bid shopping"
C)reduce the last-minute rush of subtrade bids to the prime contractor
D)introduce generally accepted definitions of the scope of work for trades that submit their prices through the depository

Question 18

Subcontractors generally can be persuaded to submit their bids earlier than the bid closing, if you can guarantee that their prices will not become public knowledge.

Question 19

The method of submitting bids now preferred by most subcontractors is to use ____, and increasingly email is being used.

A)a hard copy
B)a courier
C)a elephone
D)the fax

Question 20

Cases of underlap and overlap occur when work is not clearly defined as being part of the scope of a single trade or as being the general contractor's work.