I am reading the AHPP chapter 10.8 regarding bidding and negotiation. Got a few questions regarding the bidding process:
1. Is Bid Bond required for a bid to be considered a "responsive bid"? Do General Contractors provide a Bid Bond even if the Owner does not request for one?
2. AHPP states a "responsible bidder" is one who can demonstrate financial capacity to perform the contracted work. My question is, if this bidder turns in the bid after the deadline, then it doesn't even matter if they can financially do the work right? Since late bids are rejected?
3. Who pays for the Bid Bond and how much is it? AHPP states "AIA Doc A310 guarantees that, should the low bidder withdraw after selection but before the execution of the contract, the owner will be reimbursed by the low bidder for the difference between the low bid and the next lowest bid."
Does this mean that if the owner rejects the lowest bidder, and if the owner has a Bid Bond between him and the lowest bidder, owner needs to pay the lowest bidder the difference between the lowest and the next one up for not hiring that GC?
4. What type of project would the owner use an A310 as part of the bidding process?
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