Question: Why is the contractor normally required to submit a bid bond when making a proposal to an owner on a competitively bid contract?

Why is the contractor normally required to submit a bid bond when making a proposal to an owner on a competitively bid contract?

Step by Step Solution

★★★★★

3.49 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ANSWER A bid bond is typically required when a contractor submits a proposal to an owner on a competitively bid contract for several important reasons ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Construction Project Management Questions!

You are a general contractor wishing to put up a modest-sized cement production plant on the outskirts of town. The plant would operate on only one 10-hour shift per day and would produce about 400...

A contractor submits a bid on a project for which more research and development work needs to be done. It is estimated that the total cost of satisfying the project specifications will be $20 million...

A consultant knows that it will cost him $10,000 to fulfill a particular contract. The contract is to be put out for bids, and he believes that the lowest bid, excluding his own, can be represented...

2a. what is the purpose of the following documents in a construction contract? General conditions, special conditions, addenda, technical specifications. 2b. why is the contractor normally required...

https://drive.google.com/file/d/1rQxyugD9KQCaQQtTtHBKJGdUK9_uhhMH/view?usp=sharing please refer to the McMinnville Municipal Airport Contract Docs. Actions 2. A grossly unbalanced bid can be...

A grossly unbalanced bid can be interpreted as being irregular and thus rejected. ___True ___False For what reasons do contractors typically submit unbalanced bids? (Select all that apply). ___ To...

12. Architects and Engineers may issue a document that directs the Contractor proceed with additional work before a final price is approved if delaying the work will impact the schedule. Match the...

What dates/deadline can the Company specify in the Invitation? __________________________________________________________________________________...

Construction Project for Apple's Factory Plant A Apple PM598 September 2016 TABLE OF CONTENTS 1. INSTRUCTIONS TO...

RFP Template: Template notes: The formats of RFPs used by companies and government agencies are seldom the same. The organization of the technical, management, and commercial information included in...

Mr. Grady agrees to lease a certain property for 10 years, at the following annual rental, payable in advance: Years 1 and 2$1,000 per year Years 3 to 6$2,000 per year Years 7 to 10$2,500 per year...

A 5- gallon bucket filled with water is being pulled from theground up to a height of 20 feet. The bucket goes up 2 feet every15 seconds. The bucket has a hole in it, so that 1 quart ( 14gallon) of...

In a process cost system, in making the journal entry to assign Direct Material costs, the company would a. debit Finished Goods Inventory b. gnerally credits two or more Work in Process Inventory...

explain how the outcomes from assessing risk can be used; and AppendixLO1

What might happen if you failed to have the necessary contractors license and an owner failed to pay you?

What does it mean to breach a contract?

What is the primary distinguishing characteristic of the different contract types?

Case Description: Zeus owns and operates a large landscaping company in Tallahassee called Zeuss Landscaping, Inc. The sales of pallets of 5 different types of sod make up a large component of his...

Bing Company manufacture wood bless yes your gred for and young teen, andere forhol and colored personale om - goods stores and also we oncourt. The youth for the form for December 31, 2004,...

3. If the 400 policyholders in problem 2 elect a $1,000 deductible, the insurer's dollar loss distribution (X) becomes: X Probability $ 0 .7 4,000 .2 24,000 .1 1.0 a. b. C. Explain how this new...