Chapter 12 Contract Documents and Specifications

competitive bidding

A process whereby the client has a opportunity to obtain comparative prices from a number of contractors and/or vendors for the construction or supply of the project.

prime contract

A process whereby the client has a opportunity to obtain comparative prices from a number of contractors and/or vendors for the construction or supply of the project. Also called a construction agreement.

movable equipment

Items such as furniture, accessories, and equipment that are not fixed to a building structure.

closed specification

a bid specification that is written for one particular product, such that another product cannot be substituted for what has been specified.

open specification

a bid specification written in such a way that many products can be substituted for the item being specified.

instructions to bidders

a document that informs bidders how to prepare bids for submittal so that all submittals will be in the same form.

mechanic's lien

a legal recourse related to the labor and materials payment bond, that prevents the owner of the property from giving or selling the property to anyone until the lien has been satisfied.

letter of intent

a letter sent to the winning bidder allowing that firm to begin work on a project.

bid list

a list of acceptable potential designers and/or vendors who may receive bid notifications.

best and final offer (BAFO)

a negotiation requirement in some projects involving government or public agencies.

base bid (specification)

a proprietary specification that contains an "or equal" substitution allowance; all bidders must base their bids on the goods specified by product name.

performance specification

a specification establishing product requirements based on exact performance criteria. These criteria must be based on qualitative or measurable statements.

schedules

a tabular chart or graphic used to clarify sizes, location, finishes, and other information related to certain nonconstruction parts of an interior or structure; commonly prepared for doors, windows, and interior room finishes.

FF&E projects

acronym for projects that have minimal or no construction work involved.

modifications

additions or changes made to the contract documents

construction documents

all of the working drawings, schedules, and specifications that describe what is required for the completion of a project.

contract documents (CDs)

all the drawings and specifications that together describe what is required for a project, along with contracts or agreements between the project owner and the designer and other stakeholders.

construction agreement

an agreement between the owner of the project and the contractor hired to execute the total contract documents package. Also called a prime contract.

working drawings

another term for construction drawings.

labor and materials payment bond

bond required from the winning bidder to guarantee that, should the designer or vendor default on the project, the designer or vendor would be responsible for paying for all the materials and labor that have been contracted for.

bid bond

bond required of all bidders to ensure that the designer or vendor who has been awarded a contract will sign the contract.

performance bond

bond required of the winning bidder as a guarantee that the designer or vendor will complete the work as specified and will protect the client from any loss, up to the amount of the bond, incurred as a result of the designer's or vendor's failure to perform according to the contract.

addenda

corrections or changes made to contract documents and written by the person or firm responsible for the original set of contract documents.

descriptive specification

describes, often in elaborate detail, the materials, workmanship, fabrication methods, and installation of the required goods.

bid form

document prepared by the designer or the client and provided to the bidders. The bidders submit their prices for the goods or services on this form. Sometimes also called a tender form.

general conditions

documents that set forth the legal responsibilities, procedures, rights, and duties of each party to a construction project; part of the bid documents.

alternate bid

in competitive bidding, amounts added to or subtracted from the base bid should the client add or subtract parts of the specified project.

bond forms

legal documents used to oblige the designer or vendor to the contract as assurance that the designer or vendor will perform the requirements of the contract as agreed upon. Three common bond forms are the bid bond, the performance bond, and the labor and materials payment bond.

submittal

materials, drawings, or documents that the vendor may have to provide to the designer or contractor for approval.

closed competitive selection

occurs when those on an acceptable list of potential bidders receive notifications of impending bids and are allowed to bid on a project.

exclusions

portions of a competitive bid on which a vendor does not bid.

open competitive selection

process in which clients, such as the government agencies, advertise impending bids so that anyone who is interested in the project and meets the qualifications that are spelled out in the invitation to bid may submit a bid.

prequalified

refers to vendors or others who have been determined to be suitable to provide services and products to the company or to submit bids.

proprietary speicification

specification that lists products by the manufacturer's name, model, number, and/or part number.

reference specification

specification that uses an established standard, such as the standards of the American Society for Testing and Materials (ASTM) of the American National Standards Institute (ANSI) rather than written, detailed descriptions or performance criteria for required products.

invitation to bid

summary of the project, the bid process, and other pertinent procedures for the project. It informs potential bidders of the project, its scope, and where to obtain further information; also called an advertisement for bids.

single-source purchasing

system in which the client purchases goods from only one vendor. This term is most often used in commercial interior design.

or equal

term in a specification that allows bidders to substitute what they believe to be products of quality equal to that which was specified.

base bid (actual bid)

the amount of the project the vendor is prepared to supply that is the basic minimum specified, without consideration for alternatives.

bid opening

the time when the owner of a project reveals who has bid on the project. In most situations, the bid opening is private, and only the owner and the designer who is responsible for creating the contract documents are presents. Government agencies and many public utilities are required to hold bid openings that are open to the public. In this case, anyone may attend the bid opening and find out what others have bid for the project.

construction drawings

the typical plans, elevations, and details required for building a structure or an interior.

specifications

the written instructions to contractors and vendors concerning the materials and methods of construction or the interior products that are to be bid on a project.

change orders

written permission or instructions concerning any aspect of a project that modify design concepts, construction designs, or product specifications.