The instructions to bidders require bid security equal to 5 percent of the bid amount. A bidder submits a bond for a smaller fixed dollar amount. What controls the required bid security?
Correct Answer
B) The 5 percent requirement stated in the bidding instructions
When bidding instructions state bid security as 5 percent of the bid, that stated requirement controls responsiveness. Other choices substitute bidder preference, subcontractor quotes, or payment forms for bid instructions.
Why This Is the Correct Answer
When bidding instructions state bid security as 5 percent of the bid, that stated requirement controls responsiveness. Other choices substitute bidder preference, subcontractor quotes, or payment forms for bid instructions.
Why the Other Options Are Wrong
Option A: The bidder's preferred fixed bond amount
In procurement and contracting, The bidder's preferred fixed bond amount is the wrong selection for Bid bond amount stated in instructions: it shifts the question into contract administration money flow.
Option C: Treat only the subcontractor's quote total as the bid-security amount
Choice C gives The subcontractor's quote total only. Its specific error: it tries to bypass the Bid bond amount stated in instructions checkpoint.
Option D: The payment application form
Choice D (The payment application form) is rejected because it shifts the question into contract administration money flow.
Memory Technique
File bid bond amount stated in instructions under a cover note: condition first, number or duty second, answer The 5 percent requirement stated in the bidding instructions.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Bid instructions - bid security amount" to confirm that When bidding instructions state bid security as 5 percent of the bid, that stated requirement controls responsiveness.
More NASCLA Questions
Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
A wood deck surface has 320 sf of coverage. Boards have a 5-1/2 in. actual face width, and the order includes an 8 percent cutting allowance. What linear footage is closest?
Using the dimensions shown for the stabilized construction entrance, what is the plan area?
A reroof area requires 14,720 sf of rigid insulation. Boards are 4 ft by 8 ft, and the order includes 5 percent waste. How many boards are needed?
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
A utility trench is 180 ft long, 3 ft wide, and 7 ft deep with vertical sides inside a trench shield. What excavation volume is required?
A 120 ft long Type C trench is cut with a 4 ft bottom width and a 6 ft depth. If side slopes are 1-1/2 horizontal to 1 vertical, what excavation volume is closest?
A storm pipe run needs 240 ft of bedding, 4 ft wide and 6 in. thick. Including a 10 percent ordering allowance, how many cubic yards of bedding aggregate are needed?
A mass excavation produces 1,180 loose cubic yards of material for off-site disposal. End-dump trucks can haul 18 loose cubic yards per trip. What truck count is required?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass