Chapter 5 - Preparing the bid documents

Abstract

This chapter presents the various aspects of preparing the bid documents. Depending on the type of contract to be awarded, a slightly different set of bid documents will be required: one for a lump-sum contract award, one for a cost-plus contract, one for a construction-manager contract, and one for design-build. The bid documents should include a provision requiring the contractor to furnish his or her past five-year safety record and workers' compensation experience modification rate, which is the “multiplier” used in establishing the workers' compensation insurance rates based on previous accident rates. A modification rate that is lower than 1.0 would be deemed acceptable. In most construction contracts, the general contractor is required to furnish all insurance coverage as required by that contract, and in turn he or she requires the subcontractors to comply with specific insurance requirements, so there are several layers of often repetitive coverage and associated costs. The bid documents are the place where instructions can be included that will allow the owner to better evaluate each contractor's bid. The general conditions, evaluation of the bid, and contractor selection are also elaborated.