The Bid Package Part III
Components Of A Specification
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Specifications are divided into three
major sections (with subsections ) as
follows :
1.
Bidding and Contractual Documents
Conditions of the Contract
Detail (technical) Specifications
2.
3.
Specification Part 1: The Bidding and
Contractual Documents
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Invitation to Bid
Instruction to Bidders
Proposal Forms
Proposal
Bid Sheets
Contractor Certificates
List of Subs
Bid Bond Form
Non-Collusion Affidavits
Agreement (Contract)
Performance Bond Form
Payment Bond Form
Specification Part 2: General Conditions/Special
Conditions
ASCE Standard Construction Documents:
“Boilerplate Documents”
 The Engineers Joint Contract Documents Committee (EJCDC)
develops and updates fair and objective standard construction
documents.
 We will review the ASCE documents in this course, but AIA
documents are similar.
 EJCDC is affiliated with ASCE
 Documents represent latest thinking in contractual relations in
engineering design and construction projects
The AIA Documents
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The American Institute of Architects also provides “boilerplate
documents” for a fee.
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These are commonly accepted documents and endorsed by AGC.
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AIA Contract Documents comprise over 80 forms and contracts
 Define relationships and terms involved in design and construction projects
 Prepared by the AIA with the consensus of owners, contractors, attorneys,
architects, engineers
 The documents are now widely recognized as the industry standard.
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http://www.aia.org/
Part 3: Technical Specifications
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Although the drawings define the job visually:
 geometry, dimensions and physical details of the project,
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The technical specifications define the administrative and
quality requirements of the project
 spell out administration of the project
 complement the drawings by defining materials, workmanship and
procedures
 meant to be used throughout the project
Detail (Technical) Specifications
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Technical sections cover various parts of the project:
►Workmanship,
materials, methods
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The Construction Specifications Institute (CSI) has
developed standard “numeric codes” for work.
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These numeric codes are used in specification writing.
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CSI Codes are on course website.
What If There are Conflicts Between Drawings
and Specifications?
► Unless
noted otherwise, the specifications
govern.
► Therefore,
specifications are the single
most important project document.
► They
should be well known by the project
administrator.
Development of The Company
Technical Spec
► Each
engineering/architectural firm will
develop their own technical specification.
► These
are based on experience, industry
standards & design expertise
What Happens When Specifications are
Not Well Written?
Scope of Work Disputes!
►For
Example:
 small projects = small budgets
 lack of sufficient detail
► Outcome:
 Work is not within expectations of the owner
HOW CAN WE AVOID SCOPE OF WORK
DISCREPENCIES IN SPECIFICATION WRITING?
► Allow
adequate budget for drafting of
specifications
► Control
of specification development should
be the responsibility of one qualified person
in the company
► Specifications
for each job should be
developed from “master specification
document”
► “Master
specification” updated annually to
be sure it is current with industry standards
Generalities Should Be
Avoided
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Some phrases in specifications and drawings can make
an item “unbiddable” due to complete vagueness.
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These “unenforcable phrases” should be avoided in
specification writing:
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To the satisfaction of the engineer
As determined by the engineer
In accordance with best standard practice
As required by the engineer
Workmanship shall be of the highest quality
Other Contract Documents: Addenda
► Changes
to project AFTER job has been put
out for bid and BEFORE bid is awarded are
incorporated through Addenda.
► Rapid
communication to bidders is critical.
► Delivery
is documented to protect the
bidding process.
Other Contract Documents: Bonds
What is a Bond?
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A bond is a 3-way contractual relationship:
 Obligee (owner of the project)
 Principal (contractor)
 Surety (bonding company)
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A bond protects the owner against default of the
contractor
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The surety provides protection in case of contractor’s
default
Bid Bond
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Protects owner against damage if contractor
fails to enter Contract.
 Ie, contractor realizes the job is underbid
and would take a financial loss--does not
want perform work or enter into contract
 Bond would pay owner the $$ cost
difference between initial & next lowest
bid
 Required face value of bond is given in
the Instructions to Bidders
 Government jobs often require a bid bond
that is 10% of the bid price.
Performance Bond
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If contractor is awarded the job a performance bond is required
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Guarantees the completion of the project in accordance with contract
documents (plans, drawings & specifications)
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Bond must be delivered to owner at time of signing of contract
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Who’s protected?
 Owner
 Lending Institution
What if Contractor Defaults?
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Bonding company may assist contractor by
providing short-term financing.
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Bonding company may take over job and attempt
to take it to completion.
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All costs are paid up to the face value of the
bond.
Maintenance Bond
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Bond purchased by contractor
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Protects the owner of a completed construction
project for a specified time period against defects
and faults in materials, workmanship and design
that could arise later if the project was done
incorrectly
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Assures contractor will either correct any defects
that arise or that the owner is compensated for
those defects
Payment Bond
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Protects owner from liens (mechanic’s liens) against
project due to nonpayment of subcontractors and
material suppliers by contractor.
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Surety (bond) will pay outstanding debts
Legal Bond Obligations of the
Contractor (Principal)
► Contractor
is required to pay surety for
any loss as a result of the bond
► Contractor
may be required to sign
agreement allowing seizure of
personal assets in event of default
(if assessed as a high risk)