Checklist: contractor’s bid

A contractor’s bid is the basis of the future contract, so its weak points are easiest to correct before signing. The nine points below correspond to the questions in the bid check tool.

If you have received several bids, go through the list for each one and compare the answers.

1. Bill of quantities

The bid includes a bill of quantities with items, quantities, units of measure and unit prices
The items in the bid match the items in the design’s bill of quantities, with none merged or omitted
There are no items without a price, lump sums or entries marked ‘by agreement’
The quantities can be checked against the design

2. Fixed price or measured quantities

It states whether the price is fixed (turnkey) or calculated on the quantities actually built
For a fixed price, the scope is clear, as is what happens to works outside it
For measured quantities, it is agreed who approves quantities above those designed, and how

3. Advance payment

The amount of the advance is stated
The advance is proportionate to site set-up costs, not to works that have not yet begun
It is set out how the advance is credited in later interim statements (situacije)
Security for repayment of the advance if works do not start has been considered

4. Payment schedule

Payment is made against certified interim statements for work done, not mostly in advance
The payment period for an interim statement is stated
A retention (part of the price) is held back until defects are corrected
The final payment is tied to handover

5. Deadline and penalties

The start and completion dates are written in
There is a programme with the key phases
The consequences of the contractor’s delay are set out (contractual penalty or otherwise)
It states what counts as a justified extension of time

6. Warranties

A warranty is stated for the works and for hidden defects
The warranty periods are known, and when they start to run
Security for performance of the contract has been considered (for example a bank guarantee or a retention)
The contractor holds liability insurance for damage

7. Excluded items

The bid states what is not included in the price
It is clear who provides connections, temporary installations, waste removal and protection of neighbouring buildings
It is clear who pays for survey services and testing
Value added tax is shown separately, so it is clear whether it is included

8. Who certifies quantities and interim statements

It states who certifies quantities and interim statements
Certification is in the hands of independent supervision or the investor’s professional, not just the contractor
Quantities are evidenced by measurement sheets (dokaznice mjera) and the construction measurement book (građevinska knjiga)
An interim statement is paid only after certification

9. A price that is too low

The bid has been compared item by item with the other bids
If the bid is much cheaper than the others, you have established why: what it leaves out and which materials it uses
The contractor can explain how the price was arrived at
There are no signs that the difference will be recovered later through extra works and variations

This is a general checklist, not legal advice. It does not replace a professional assessment. For your specific case, consult a designer, lawyer, notary or another suitable professional.

Bastion dizajn d.o.o.

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