A general contractor receives subcontractor bids with the following ranges: electrical $45K-$65K, plumbing $38K-$52K, HVAC $72K-$89K. What should be the primary concern when selecting the lowest bidders?
Correct Answer
D) Subcontractor qualifications and ability to perform
While cost is important, the primary concern should be ensuring subcontractors are qualified, licensed, insured, and financially capable of performing the work as specified.
Why This Is the Correct Answer
When selecting subcontractors, the primary concern must be their qualifications and ability to perform the work properly. Simply choosing the lowest bidder without verifying their licensing, insurance, financial stability, experience, and technical capability can lead to poor workmanship, project delays, safety issues, and potential legal liability. A qualified subcontractor who can deliver quality work on time is more valuable than an unqualified low bidder who may cause costly problems.
Why the Other Options Are Wrong
Option A: Impact on project schedule
Owner approval may be required contractually, but the general contractor's primary responsibility is ensuring subcontractor qualifications before presenting options to the owner. This is a professional duty that comes before seeking approval.
Option B: Owner approval of subcontractor selection
While cost savings are important, focusing solely on total cost without considering subcontractor qualifications can result in much higher costs due to rework, delays, safety incidents, and potential legal issues from unqualified contractors.
Option C: Total cost savings to the project
Schedule impact is a secondary consideration that stems from subcontractor capability. An unqualified low bidder is more likely to cause schedule delays than a qualified contractor, making qualifications the primary concern.
Memory Technique
Remember 'QUALIFY before you BUY' - always verify subcontractor qualifications before considering price.
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
An indemnification clause in a construction contract typically requires the contractor to:
A property owner wants to convert a single-family home into a duplex in an area zoned for single-family residential use. The conversion meets all building codes but violates density requirements. What approval is needed?
As-built drawings are typically required to be submitted:
AIA Document A401 is primarily used for:
A general contractor is building a 12,000 square foot commercial warehouse. The building permit fee is calculated at $8.50 per $1,000 of construction value. If the project value is $2,400,000, what is the building permit fee?
People Also Study
Business & Financial Management
120 questions Β· 70% to pass
Project Management
60 questions Β· 70% to pass
Related Study Resources
Previous Question
A contractor is estimating concrete for a foundation that measures 120 feet by 80 feet with an 8-inch thick slab. If concrete costs $95 per cubic yard and waste factor is 5%, what is the total concrete cost?
Next Question
During a final inspection for a Certificate of Occupancy, the building inspector finds that the exit signs are not illuminated. This is considered what type of violation?
