Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
Correct Answer
C) It protects the owner if the bidder refuses to enter the contract or furnish required bonds
Bid security protects the owner if a successful bidder fails to execute the contract or provide required bonds. Other choices confuse bid security with payment processing, post-award bonding, or change authorization.
Why This Is the Correct Answer
Bid security protects the owner if a successful bidder fails to execute the contract or provide required bonds. Other choices confuse bid security with payment processing, post-award bonding, or change authorization.
More NASCLA Questions
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
A rooftop unit schedule lists capacity in tons of cooling. In HVAC estimating, one ton of cooling equals what heat-transfer rate?
The bid form asks for a base bid and three alternates. How should the contractor submit alternate pricing?
A specification includes a $40,000 hardware allowance because final selections are pending. How is the allowance treated in the bid?
The earthwork section requires unit prices for unsuitable-soil removal. What is the contract-administration use of those unit prices?
Before the first progress payment, the owner requests a schedule of values. What is its main contract-payment function?
A signed change order is issued for added lobby millwork. Which contract effect should it state?
On the finish plan, locate room R358; then use the finish schedule. What remarks is listed?
The owner needs a scope change to proceed before price and time are fully agreed. Which instrument is used to direct the change while reserving later adjustment?
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
Related Study Resources
Previous Question
During turnover, a panel directory still lists several breakers as spare even though they feed occupied tenant circuits. What is the best closeout correction?
Next Question
A contractor had 3 OSHA-recordable cases and 150,000 labor-hours. What is the total recordable incident rate using the 200,000-hour base?