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CIEN E3129 Project Management for Construction

Department of Civil Engineering and Engineering Mechanics


Columbia University
Fall 2015
Homework Assignment #1 Overview of Engineering & Construction Processes
Text: 2-1 through 2-6; 2-8, 3-1 through 3-3, 3-5 (modified), 3-7
Due Date: September 30, 2015 (submit a hard copy in class)
2.1 What are the three major types of construction bonds? Why are they required? Name three
items that affect bonding capacity.
The three major types of construction bonds are (1) bid, (2) performance, and (3)
payment bonds. Bid bonds are required to ensure that the client is protected from the possibility
of the contractor defaulting from the awarded contract. Performance bonds are issued to the
contractor by the owner so as to ensure that the contract work will be completed in accordance
with the project specifications. Finally, the owner issues payment bonds as a protection from
liens against the completed project. Bonding capacity is affected by project payments, the status
of costs, and any disputes regarding incomplete work.
2.2 In what major section of the contract is the time duration of the project normally specified?
The time duration of the project is normally specified in the supplementary conditions
section of the contract.
2.3 Who are the three basic parties involved in any construction bonding arrangement?
The three basic parties involved are:
1. The owner (obligee)
2. The contractor (principal)
3. The bonding entity (surety)
2.4 What type of bond guarantees that if a contractor goes broke on a project the surety will pay
the necessary amount to complete the job?
A performance bond
2.5 What is the purpose of the following documents in a construction contract?
a. General conditions
The general conditions explain how the contract is to be issued. It also spells out
the relationships between all involved parties. General conditions are applicable to any
and all projects, and are specified by the engineer or primary consultant.
b. Special conditions
Special conditions are particular to the given project, and explain aspects like
time, budget, wages, and liquidated damages.
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CIEN E3129 Project Management for Construction


Department of Civil Engineering and Engineering Mechanics
Columbia University
Fall 2015
c. Addenda
Changes to the bid package before the bid opening. These changes, corrections,
and conditions become part of the basis for bidding.
d. Technical specifications
Tech. specs explain the technical procedures and details required of the work to be
performed.
2.6 Why is the contractor normally required to submit a bid bond when making a proposal to an
owner on a competitively bid contract?
With a competitively bid contract, a bid bond insures a higher percentage of the project
than a private bid would, and the owner wants to be protected from a contractor who might
default.
2.8 What is the purpose of the notice to bidders?
The notice to bidders, sent out by the owner, informs contractors about the project being
put up for a bid. It explains the procedures for bid submittal and can also provide plans,
specifications, and details about the project.
3.1 What is the difference between liquidated damages and a penalty for late completion of the
contract?
Liquidated damages are an estimation of the loss that the owner incurs for each day that
the project is delayed. The contractor agrees to pay this amount for every day of delay. A penalty,
also estimated, is typically higher than liquidated damages, and does not have to do with the
actual value of damages incurred to the owner by the late completion. Another difference
between the two is that whatever the penalty may be for late completion of the contract is the
same amount that the owner must pay to the contractor as a bonus for early completion.
3.2 What is the purpose of retainage?
Retainage is a portion of the contract award that the owner withholds until the contractor
has substantially completed the project. The purpose of retainage is to ensure that the work is
seen through until the end by the contractor.
3.3 During what period can a contractor withdraw the bid without penalty?
A contractor can withdraw the bid without penalty before the bid opening.
3.5 Describe the procedures to be followed for the receiving and opening of bids.
Receiving bids:
Stop receiving bids after the bid deadline
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CIEN E3129 Project Management for Construction


Department of Civil Engineering and Engineering Mechanics
Columbia University
Fall 2015
Receive bids at the designated location for submittal
All bids must be sealed in an envelope, addressed, and endorsed
As a bid is received, it must be stamped with the date and time
Once the bid deadline has passed, announce its passing and stop
receiving bids.
Announce the time and location where bids will beopened.
Opening bids:
Review bid opening procedures with the bidders present
Open the bids
Have someone record relevant information of each bid on a bid
tabulation form
Announce the lowest bidder to all bidders present
Post the bid tabulation in a location where it will be available to all
bidders.
Announce the completion of the bid opening procedure, thank the
bidders for their bids, and inform them that the bids will be taken under
advisement.
3.7 Describe the procedure to be followed by the contractor who wishes to claim a time
extension. What sort of documentation do you think is necessary to either refute or defend a time
extension claim due to unusual weather? What sort of records do local contractors keep of
weather conditions?
A contractor who wishes to claim a time extension must refer to the details laid out in the
condition section of the contract. Typically, the contractor would submit a report to the client
explaining why there is a delay, its effect on the timeline, and how long of an extension is being
requested. There must be some sort of proof that the delay was unforeseeable before the start of
construction.
When there is a time extension due to unusual weather, the contractor must submit
weather reports from past years as well as the forecast to show that the unusual weather is,
indeed, unusual. Once this is accepted by the client, the extension request can be approved. Local
contractors keep previous years weather records of their work/project locations.

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