Sample BID Form BID FORM ITEM 1. PROJECT DESCRIPTION: ___________________________________________ ______________________________________________________________________________________ _______________________________at_______________________ ITEM 2. Name of Owner:_______________________________________________ Funds for this project are secured by: ______________________________________ ITEM 3. Name of Construction Manager:_______________________ (All negotiations, instructions, and questions between owner and contractor will be through this person and no one else’s instructions will be valid). Home Phone:_____________ Office:__________FAX: ______________ Mobil: ____________ ITEM 4. Name of Firm Offering Bid: ___________________________________ Address:_____________________________ Office Phone:____________ FAX: __________ Mobil:__________ License Number: _________________ (if licensed) Bid Limit: _______________ ITEM 4. Contractors Liability Insurance Carrier:__________________________ Amount per incident: _______________ Total Amount:_____________________ ITEM 5. Start Construction Date: ___________ Substantial Completion Date: _______________ (If blank contractor to provide dates as part of his bid.) ITEM 6. RETENTION A monetary penalty of $_______ will be charged the contractor for each working day the project is not substantially completed. Working days will be Monday through Friday with allowances for state holidays. Substantial completion date shall be defined as: The date the project is completed to the point that owner can fully use and occupy the project, and the jurisdiction has issued a certificate of occupancy, and after a final acceptance inspection with the owner and contractor present and a punch list established and signed by both parties, and punch list having only minor items that do not effect owners use of the project, and owner receives all manufacturers information, warrantees, and certificates on roofing, appliances, or any additional items specified in the contract documents or provided with installed equipment or materials. Owner will not use minor unfinished items normally listed on a punch list as cause to reject substantial completion unless such items are extensive, numerous, excessively unsightly, or interfere and make occupancy unreasonable or difficult for owner. It is understood that all fixtures will be operable, all paint and finishes completed, and project is weather tight. When owner and contractor agree on substantial completion both are obligated to inspect the project together and develop a final punch list that will list in detail all items that are not completed. Punch list items are understood to be only items that allow owner full use of item but due to minor repair or work, item is not satisfactory. Punch list items will include paint touchup, blemishes, operation problems etc. Owner will allow contractor only 15 days to complete all punch list items after which owner may at his option complete such items and withhold cost from final payment to contractor. It is understood that it is in the contractors best interest to provide a completed project upon substantial completion and that punch list items are for only
minor unavoidable conditions. Contractor understands that owner is not obligated to accept substantial completion or occupy project until project is completed but may do so upon agreement of both contractor and owner. Owner also understands that he may not occupy project until contractor delivers the substantially completed project to him in writing. Contractor understands that if such agreement for occupancy prior to substantial completion is negotiated such agreement does not relieve contractor from completing project or relieve him from completion date penalties or any other provisions of the contract. It is further understood that owners issuance of punch list does not prevent owner from adding to his list upon discovery of any additional items that would normally have been on the list but not discovered at time of the generation of the list. Nor does the list relieve contractor of any warranties otherwise required by contract and by law. An escrow account may be required at owner’s option when owner accepts the project to cover any items not completed.
ITEM 7. CHANGE ORDERS: Owner will not pay for changes for discrepancies in the plans not reported to owner at time of bid. Owner will not pay for or accept any change in work without written authorization to include negotiation of price in advance of the work. If contractor performs any work or supplies any materials not included in the contract documents without prior written authorization, he does so at his own risk. He may be required to replace such items at his cost, or owner may at his option accept such labor or material without extra cost to the owner. Owner reserves the right to award any change order to another contractor or do it himself. All change orders will be either a negotiated lump sum price, or cost plus the following proposed contractor mark up______% at the option of the owner. (Contractor to specify markup percentage.) Cost changes will be awarded only if: A. They are requested by the owner in writing. B. They are requested by the contractor in writing for any item not included in the contract documents, plans, specifications, bid instructions and owner accepts price and provides written approval. ITEM 8. INSURANCE Contractors liability insurance policy is with:_____________________________ for the amount of $______________ per incident and a total of $___________________ ITEM 9. Prior to contractors submission of the bid he should make a careful examination of the site, of the project and of the plans. The construction specifications and drawings, general contract conditions, contract documents; and shall become informed as to the location and nature of the proposed construction. The kind and character of soil and terrain to be encountered, the kind of facilities, and electrical, plumbing, utilities, and all conditions required before and during the construction of the project. Seasons, weather supplies, labor, general and local conditions. Completion of the project and the bid should include all conditions or specifically and clearly exclude any item. ITEM 10. If a discrepancy occurs between the equipment supplied and the intent or function of the equipment catalog number, discontinued products, drawings, specifications, etc., the Contractor shall bring this to the attention of the owner in writing prior to bidding. Failure to report any conflict does not relieve the contractor from meeting the intent of the contract documents nor shall it change the contract cost. It shall further be understood that if the contractor is unable to interpret any part of the plans and specifications, or should he find discrepancies therein, he shall call attention of the fact to the owner. The owner then will issue amended instructions to all bidders. ITEM 11. Owner reserves the right to waive minor irregularities of minor errors in any proposal if it appears to owner that such irregularities or errors were made through inadvertence. Any such irregularities or errors so waived must be corrected on the proposal in which they occur prior to the execution of any
contract, which may be awarded. ITEM 12. Some equipment specified may carry brand names and catalog numbers and shall be interpreted as establishing a standard of quality. The owner will consider substitutions with approval. bids must show any differences including trade names, model numbers and indicate any change it may make in the intent of the design, otherwise the contract drawings and specifications shall be met without additional cost to the owner. ITEM 13. (Value Engineering) Alternate cost saving design proposals is encouraged. They must meet the intent of the design with either an initial cost saving, future cost savings, or improvement in the design or use by the owner. Design bid proposals with changes from any specified fixtures or design must include a list of substituted or new materials, including fixture information needed to judge the cost savings and it's relation to the intent of the present design. Shop drawings may be required. Any cost savings resulting from design proposals accepted by the owner will be split on a 50/50 basis with the owner and contractor. ITEM 14. The owner reserves the right to reject any or all bids and does not obligate himself to accept the lowest or any other bid. Owner reserves the right to not disclose the bid amounts of competitor bids. ITEM 15. Owner reserves the right to do any of the following work based upon contractors price. Provide separate price options for: __________________________________. ITEM 16. Contractor to secure and pay all utility instillation fees permit fees and plan checks fees and provide temporary services such as power or water. ITEM 17. Special Conditions:_________________________________________________ ______________________________________________________________________________________ ______________________________________________________________ ITEM 18. Payment disbursements will be paid as follows: __________________________ ITEM 19. A retention of : ______% will be held on all work until satisfactory completion of the entire project. Owner may release some of these fees toward completion of the project or may hold additional fees to match owners risk. ITEM 20. Total price for this project is: _______________________________________ I agree to the stipulations of the Bid instructions with my bid and information included in this form. Contractors signature ____title____________ date
Explanation of Bid Instructions EXPLANATION 1. Project: Describe the plans, specifications and project including name and dates of person or firm preparing plans and specifications. Example: Construct a two story five bedroom home in accordance to plans and specifications prepared by Northern Design dated June 8, 1998. Provide address of the construction site.
EXPLANATION 2. Owner: Owners name and financing. Specify if you have a loan and name the bank or state the amount of cash placed in an escrow account etc. When your contractor is assured you have sufficient funds their contingency fee will not be increased due to fear of collecting. EXPLANATION 3. CM: State the name of the CM you have selected. This book is written to help the owner to be his or her own CM. (Again remember have only one person answer all questions. This will avoid conflicting instructions to the bidders that will adversely effect the bid as well as change orders and effective CM. For example, the husband tells one contractor that the siding is vinyl and the wife tells another bidder the siding is plaster, which is more expensive. When you get ready for the siding one of you will be surprised and the contractor can take advantage of your conflicting directions. EXPLANATION 4. Contractor: Some states do not regulate contractors. If your state does, have the contractor provide his license number. States that regulate contractors usually also regulate the maximum monitory amount a contractor can bid. EXPLANATION 5. Dates: If you want to dictate the start and completion dates place them in the blanks. If you want the contractor to decide the dates leave them blank. Note if your project is a remodel and you do not want the contractor working on Saturdays or Sundays or before 7:00 A.M. or after 6:00 P.M. you must let him know at the time of the bid. EXPLANATION 6. Penalty: You do not have to use a penalty however if you do not, you have no leverage to get your job completed in a timely manner, and you lose control. If you assess a large penalty (i.e. over $200.00 on an average home) your contractor may increase his bid to cover his risk. If you assess a small penalty (under $50.00 on an average home) your contractor may not be motivated to complete your job on time. Your decision for the amount should consider your need to have the project completed by a certain date, the costs you may incur if it is not, and the total contract amount. A higher the total contract the higher the penalty. EXPLANATION 7. Change Orders: (See definitions for change order.) EXPLANATION 8. Insurance: This will be specified in your contract however having the contractor provide this in advance will give you additional information to help you consider his bid. If the contractors insurance is above your requirement you may want to give him greater consideration. EXPLANATION 9. This prevents the contractor from billing you for many extras. I.e. you are adding a basement addition and the plans omitted grade contours, and the contractor failed to visit the site. Without this condition the contractor could bill you for additional yards of excavation not shown on the plan. This kind of situation will occur on almost every project so item 9 is important to make the contractor responsible to insure his bid covers all the work. With the requirement to specify in his bid any questions or items he wants to exclude. This condition helps obtain a full complete price without any excuses. EXPLANATION 10. This item is similar to item 9 with additional specific language to avoid other problems. This prevents the contractor from billing you because the water heater was not specified as gas or electric and he bid electric, which is cheaper, and you wanted gas. In other words if the plans or specifications are not clear it shall be the contractors obligation to ask for clarification. Without this clause
some contractors may choose the cheapest and force the owner to accept it. It further states that you are attempting to be fair to each bidder so that each has the opportunity to insure their bids are based upon identical information. EXPLANATION 11. This gives the owner the right to disregard a minor mistake made by a contractor in his bid. For example, as you compare the bids you find the contractor you want to use gave a start date later than the completion date. Without this clause you could be required by law to eliminate his bid. EXPLANATION 12. This allows the contractor to substitute a material if he tells you he is doing it in his bid. For example, suppose your specifications require Kohler plumbing fixtures. And the contractor can obtain Delta fixtures for less money and he can show that it is the same quality as Kohler. You then have the choice of obtaining a better price for equal quality. Without this clause the contractor would not be able to provide you a cost alternative. EXPLANATION 13. This is a good way to obtain savings. Often different contractors have great ideas and can see problems in your design or materials that may have been overlooked. For example, suppose your plans show a joist roof and by redesigning the roof with engineered trusses the contractor can save $2,000.00. The truss roof is equal to or better than the joist and you decide to use it. You then save $1,000.00 after paying the contractor $1,000.00 for his idea. By offering the contractor 50% of the savings you motivate them to save you money. You may save money or improve your project considerably with this provision. Remember that the contractor works with materials and often has ideas that another contractor or architect may not know. The contractor with the best ideas deserves to earn extra for his ability to save you money or provide you a better project. Note: Your bidder deserves to keep his design secrete until you award the contract. I have seen some owners abuse contractors by obtaining information from them then, do the work themselves or give their idea to another contractor to do their work. If you use value engineering be fair to those who present ideas and let them protect their ideas until you use them. This is a delicate situation, you need to know enough about the idea to know if it is worthwhile yet the contractor needs protection too. You might consider a disclosure statement stating you promise not to use his idea unless he is awarded the job and a fee to purchase the idea if you choose another contractor. EXAMPLE 14. Without this statement you may obligate yourself to accept the low bid and be obligated to disclose the bids. EXAMPLE 15. This condition allows the owner to do certain work included in the plans and specifications. If you want to do any of the work yourself you must tell the contractor in advance. The contractor has every right to prevent you from doing any work unless you exclude it from the description of the work he bid on. List any items you may want to do. By obtaining unit prices you then have the right to choose if you want to do the item or have the contractor do it. For example, you think you want to do the paint, yet when you see the contractors price you decide you can not save money on the paint. Another reason for the itemized price would be if the time came for you to do the paint and you did not have the time or resources to do it. You can specify any item you want such as carpet, tile, etc. EXAMPLE 16. Include and or exclude items you will pay for and those you want the contractor to pay for. Items not listed will become your obligation. EXAMPLE 17. Special Conditions:_____(List any special conditions you want such as protect a certain
tree, shrubbery, restrict use of a driveway, times of work or any variables on the project.) EXAMPLE 18. Specify whether (progress or monthly) payments to contractor will be made upon completion of payment forms and owner/bank inspection approvals of labor and materials completed or supplied. There are certain established progress points in residential construction, which are 1. Excavation, concrete. 2. Framing upon roof dry in, rough in electrical, plumbing, and heating. 3. final. You can establish whatever points of progress you want. If you have a bank loan they will dictate the payment times. EXAMPLE 19. This is a critical IMPORTANT item to maintain control of your project. Contractors are motivated by money just like any other business. If you do not have a retention of money to insure the contractor performs he may not. This motivates the contractor to finish the project on time with every effort to keep you happy so he will get all of his retention money. Basically the retention is his profit and if he does not perform he makes no profit on your job. As long as the contractor knows up front that you will be holding money this is a legal and just management tool. By requiring retention your contractor may increase his bid. Without it you may pay more trying to get him to perform. Either too high (over 25%) a retention percentage or too low (under 5%) a percentage is not wise. Each owner and his projects needs and conditions should be evaluated to determine the appropriate amount. EXPLANATION 20. Total price to do the project.
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