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Nevada Law & Business - Estimating, Bidding and Public Works

Nevada Law & Business - Estimating, Bidding and Public Works

Nevada Business & Law — Section 8: Estimating, Bidding & Public Works

Use your NASCLA Contractor’s Guide — Nevada Edition. PSI leans on: takeoff accuracy, labor burden, overhead & profit, allowances/alternates, addenda handling, bid responsiveness vs responsibility, bid bonds/performance & payment bonds, subcontractor listing & substitutions, ethics/anti-collusion, public works (prevailing wage, certified payroll, prompt pay, retainage), change orders, and bid protests. Tab the definitions, checklists, tables, and step-by-step procedures.

1) Estimating Fundamentals Takeoff → Cost → Price

Quantity Takeoff

  • Read scope, alternates, and allowances first.
  • Measure by system/trade; include waste and laps.
  • Capture indirects (mobilization, temp utilities, supervision).

Labor & Productivity

  • Base crew rates × hours with productivity factors.
  • Apply labor burden (payroll taxes, WC, fringes).

Markup & Risk

  • Overhead (G&A, home office) + Profit.
  • Contingency for estimating uncertainty (not scope gap filler).
2) Allowances, Alternates & Unit Prices Bid form mechanics
  • Allowance: placeholder sum for undefined items; reconcile to actual cost.
  • Alternate: add/deduct scope priced separately; owner selects after bid.
  • Unit prices: quantities × rates; watch for unbalanced bids.
3) Bid Documents & Addenda Stay current

Pre-Bid

  • Attend pre-bid meetings; note site constraints.
  • Submit RFIs early; track responses.

Addenda

  • Acknowledge each addendum on the bid form.
  • Reprice impacts; update sub/supplier quotes accordingly.
4) Managing Sub & Supplier Quotes Scope coverage
  • Issue clear bid scopes; compare apples-to-apples.
  • Eliminate scope gaps/overlaps; confirm inclusions/exclusions.
  • Use quote logs; lock-in commitments before bid.
5) Bid Bonds, Performance & Payment Bonds Surety 101

Bid Bond

  • Assures the bidder will enter contract and furnish bonds if awarded.
  • Penal sum as stated (e.g., % of bid).

Performance Bond

  • Guarantees contract performance to owner.
  • Triggers upon contractor default per bond terms.

Payment Bond

  • Protects subs/suppliers if GC fails to pay (especially on public work).
  • Follow statutory claim steps.
6) Bid Responsiveness vs Responsibility Don’t get tossed
  • Responsive: bid is complete and conforms to the invitation (forms, addenda, signatures).
  • Responsible: bidder has capability, experience, finances, and licensing.
  • Minor informalities may be waived; material defects usually cannot.
7) Subcontractor Listing, Substitutions & Ethics Fair play
  • When listing subs is required, list correctly by trade and license.
  • Post-bid substitutions only per stated rules (cause, consent, timelines).
  • Anti-collusion affidavits, no bid shopping/peddling; document communications.
8) Public Works Basics Prevailing wage & certified payroll

Rates & Classifications

  • Pay the correct prevailing wage + fringe by classification.
  • Apprentice ratios/registration; verify documentation.

Certified Payroll

  • File weekly/periodic reports as required.
  • Keep backup: timecards, fringe details, sub certs.
9) Prompt Pay, Retainage & Closeout Cash flow rules
  • Follow statutory/contract prompt-pay timelines.
  • Know retainage %, reduction at milestones, and release conditions.
  • Closeout: punch, O&M manuals, warranties, final waivers.
10) Post-Award Administration From NTP to COs
  • Notice to Proceed (NTP), baseline schedule, submittal log.
  • Change orders in writing; document differing site conditions promptly.
  • Track allowances/contingencies; update SOV and pay apps.
11) DBE/MBE/SBE Goals & EEO Compliance evidence
  • Document good-faith efforts: ads, outreach, bid logs, follow-ups.
  • Maintain EEO postings/training; no retaliation.
12) Bid Mistakes, Withdrawal & Protests Procedures & timelines
  • Clerical vs judgment errors; limited relief rules if allowed.
  • Withdrawal/forfeiture conditions tied to bid bond language.
  • Bid protest grounds (specification, responsiveness, responsibility) and deadlines.

Practice Exam — 60 Questions Answers & brief explanations under each

1. The first step in estimating is to:

  1. Price profit
  2. Read scope, alternates, and allowances
  3. Call subs
  4. Sign a change order
Answer

B — Define what’s being priced.

2. Labor burden includes:

  1. Owner dividend
  2. Payroll taxes, WC, fringes
  3. Bid bond
  4. Sales tax only
Answer

B — Costs on top of base wages.

3. An allowance is best described as:

  1. Final price
  2. Placeholder amount for undefined items
  3. Unit price
  4. Alternate
Answer

B — Reconcile later to actuals.

4. An add alternate:

  1. Must be included in base
  2. Is a separately priced optional scope
  3. Replaces bonds
  4. Sets retainage
Answer

B — Owner may accept/reject.

5. Unit prices can create risk if:

  1. Balanced with expected quantities
  2. Unbalanced to exploit quantity changes
  3. Used with alternates
  4. Printed clearly
Answer

B — May be disqualified if materially unbalanced.

6. A responsive bid is one that:

  1. Has the lowest contingency
  2. Conforms to all material bid requirements
  3. Uses the nicest paper
  4. Lists extra subs
Answer

B — Completeness and conformity.

7. A responsible bidder is one who:

  1. Is cheapest
  2. Has capacity, experience, finances, and proper licensing
  3. Uses pencil
  4. Has no subs
Answer

B — Capability to perform.

8. A bid bond primarily protects the:

  1. GC
  2. Owner/awarding authority
  3. Sub
  4. Supplier
Answer

B — If low bidder refuses to execute.

9. Performance bonds protect:

  1. Owner against nonperformance
  2. Sub’s lien rights
  3. Payroll taxes
  4. Designer’s fees
Answer

A — Completion guarantee.

10. Payment bonds primarily protect:

  1. Owner’s schedule
  2. Subs/suppliers for payment
  3. Architect’s license
  4. Insurance carrier
Answer

B — Substitute for liens on public work.

11. Failing to acknowledge an addendum can make a bid:

  1. Stronger
  2. Non-responsive
  3. Cheaper
  4. Bond-free
Answer

B — Material defect.

12. Subcontractor scope “overlaps” result in:

  1. No issue
  2. Double-buying
  3. Cheaper bids
  4. No gaps
Answer

B — Pay twice for same work.

13. A scope “gap” means:

  1. Too many subs cover it
  2. Nobody has included that portion
  3. Owner owns it
  4. Alternate covers it
Answer

B — Fill before bid.

14. Good-faith efforts for DBE/MBE involve:

  1. Oral promises only
  2. Documented outreach, advertising, and follow-up
  3. Ignoring quotes
  4. No records
Answer

B — Keep proof.

15. Prevailing wage compliance requires paying:

  1. Any rate
  2. Set wage + fringe by classification
  3. Salary only
  4. Tips
Answer

B — Check posted schedules.

16. Certified payrolls must be:

  1. Ignored
  2. Filed as required and backed by timecards
  3. Filed at warranty
  4. Sent to subs
Answer

B — Documented compliance.

17. A listed subcontractor may be substituted:

  1. Any time
  2. Only per allowed reasons and procedures
  3. Never
  4. With a text message
Answer

B — Follow rules.

18. A minor informality in a bid is:

  1. Always fatal
  2. Something waivable that doesn’t affect price, quantity, or quality
  3. A bond forfeiture
  4. Unit price error
Answer

B — At owner’s discretion.

19. A clerical mistake may allow bid withdrawal when:

  1. The owner feels bad
  2. Statute/solicitation permits timely proof of error
  3. It’s Friday
  4. Alternate is accepted
Answer

B — Follow the procedure.

20. “Unbalanced bid” means:

  1. All unit prices equal
  2. Nominal/overstated unit prices distort total for expected quantity changes
  3. No alternates
  4. No bonds
Answer

B — May be rejected.

21. Prompt-pay rules typically govern:

  1. When bids open
  2. Time limits to pay progress invoices
  3. Lien waiver types
  4. RFI turnarounds
Answer

B — Statutory/contract deadlines.

22. Retainage is:

  1. Tax refund
  2. Holdback of payment until milestones/final completion
  3. Liquidated damages
  4. Bid allowance
Answer

B — Security for completion.

23. A “pre-bid RFI” should be used to:

  1. Change scope unilaterally
  2. Clarify documents before pricing
  3. Replace submittals
  4. Set LDs
Answer

B — Get answers early.

24. The best defense against bid protests is to:

  1. Ignore directions
  2. Follow instructions exactly and document compliance
  3. Use a different form
  4. Skip addenda
Answer

B — Checklists help.

25. A bid is usually irrevocable for a period because:

  1. Custom
  2. Bid holds are required by solicitation
  3. Insurance
  4. Lender
Answer

B — Hold period protects owner.

26. If an alternate is accepted post-bid, the contract price is:

  1. Unchanged
  2. Adjusted by the alternate price
  3. Reduced to zero
  4. Re-bid
Answer

B — As stated on the bid form.

27. Public owners rely on payment bonds because:

  1. They prefer liens
  2. Public property typically cannot be liened
  3. Designers require it
  4. Subs like it
Answer

B — Bond claim path.

28. After award, the first schedule submittal is often the:

  1. As-built
  2. Baseline CPM schedule
  3. Punch list
  4. RFI log
Answer

B — Establishes project plan.

29. “Notice to Proceed” (NTP) authorizes:

  1. Bid opening
  2. Start of on-site work and time
  3. Lien waiver
  4. Warranty start
Answer

B — Contract time begins.

30. Differing site conditions should be handled by:

  1. Proceed without notice
  2. Prompt notice, await direction, document impacts
  3. Ignore
  4. Bill later without backup
Answer

B — Protects rights.

31. “Bid shopping” is:

  1. Encouraged
  2. Unethical practice of using a sub’s price to pressure others
  3. Required
  4. Bonded
Answer

B — Avoid; follow fair dealing.

32. On prevailing wage jobs, a worker performing two classifications:

  1. Gets the lower rate
  2. Must be paid by hours per classification at the applicable rate
  3. Gets average only
  4. Gets salary
Answer

B — Split-coded time.

33. A “pre-bid site visit” helps identify:

  1. Payroll taxes
  2. Access, laydown, utilities, and constraints
  3. Lien waivers
  4. EEO posters
Answer

B — Impacts cost and schedule.

34. If a sub quote excludes tax required by contract:

  1. Ignore it
  2. Normalize the quote to include required taxes
  3. Use it as-is
  4. Delete sub
Answer

B — Apples-to-apples.

35. A “materially unbalanced” bid may be:

  1. Awarded
  2. Rejected
  3. Ignored
  4. Bonded
Answer

B — Distorts competition.

36. The best tool to prevent takeoff errors is:

  1. Memory
  2. Checklist and peer review
  3. Skipping pages
  4. Guessing
Answer

B — Systematic QA.

37. A “non-collusion affidavit” states that:

  1. Bids were coordinated with competitors
  2. Bidder acted independently without anti-competitive conduct
  3. Bonds are waived
  4. Unit prices are hidden
Answer

B — Ethical compliance.

38. Front-end specs Division 00/01 typically include:

  1. Only drawings
  2. Instructions to bidders, general requirements, bonds, insurance
  3. Paint colors
  4. Shop drawings
Answer

B — Bid/contract boilerplate.

39. A “base bid” is:

  1. Alternate only
  2. Required scope without alternates
  3. Allowance
  4. Unit price
Answer

B — Foundation for award.

40. Post-award submittal priority is to:

  1. Delay
  2. Issue submittal schedule/log and long-lead items first
  3. Do punch list
  4. Warranties
Answer

B — Protect schedule.

41. Price “contingency” covers:

  1. Scope gaps
  2. Estimating uncertainty within scope
  3. Bonding
  4. Taxes only
Answer

B — Not a substitute for missing work.

42. A quote log should capture:

  1. Only vendor names
  2. Trade, inclusions/exclusions, dates, amounts, contact
  3. Weather
  4. Safety talks
Answer

B — Manage comparisons.

43. If a bid form requires wet signature and date, missing it is likely:

  1. Minor
  2. Material defect (non-responsive)
  3. Unit price variance
  4. Alternate
Answer

B — Follow form precisely.

44. Post-bid “leveling” of sub quotes means:

  1. Negotiating only
  2. Normalizing to common scope and terms
  3. Ignoring exclusions
  4. Picking lowest number
Answer

B — Apples-to-apples selection.

45. A “preconstruction meeting” typically covers:

  1. Picnic plans
  2. Schedule, submittals, safety, communication, site logistics
  3. Pay raises
  4. Lien waivers
Answer

B — Align the team early.

46. On public works, certified payroll typically is due:

  1. Never
  2. Weekly/periodically as specified
  3. At warranty period
  4. At punch list
Answer

B — Keep current.

47. “Force account” pricing is often used for:

  1. Base bid
  2. Time & material extra work
  3. Unit price work
  4. Allowances
Answer

B — Field T&M tickets.

48. If a required bid envelope label is missing:

  1. No issue
  2. Bid may be rejected as non-responsive
  3. Bond is waived
  4. It wins
Answer

B — Follow submission rules.

49. “Buy America/Buy American” clauses may require:

  1. No paperwork
  2. Domestic content certifications or waivers
  3. Lower wages
  4. Extra retainage
Answer

B — Track origin documents.

50. If an award is protested, the GC should:

  1. Ignore
  2. Follow the protest procedure and preserve schedule contingencies
  3. Start demo
  4. Release bonds
Answer

B — Comply with timelines.

51. Submittal review by designer generally:

  1. Changes contract scope
  2. Does not change scope unless by change order
  3. Defines retainage
  4. Sets payroll
Answer

B — Same rule as Section 4.

52. If long-lead equipment is required, the GC should:

  1. Wait
  2. Submit immediately after NTP to protect schedule
  3. Skip submittals
  4. Price at closeout
Answer

B — Mitigate risk early.

53. Prompt-pay acts often require that undisputed amounts be paid:

  1. Someday
  2. Within specified days after approval
  3. At final completion only
  4. After warranty
Answer

B — Know the timeline.

54. A bid tabulation is used to:

  1. List subs
  2. Compare bids received and apparent low
  3. Set wages
  4. Record safety
Answer

B — Transparency at opening.

55. If a supplier errors and underquotes, after award the GC should:

  1. Ignore contract
  2. Hold supplier to PO or follow change procedures—contract governs
  3. Change owner price unilaterally
  4. Stop work
Answer

B — Contracts control, not quotes.

56. A “lump-sum” bid means:

  1. Unit prices only
  2. One fixed price for the defined scope
  3. Time & materials
  4. Allowance only
Answer

B — Fixed total.

57. Post-bid, the owner normally requests:

  1. W-2s
  2. Proof of insurance, bonds, and executed agreement
  3. Vacation schedules
  4. Shop drawings
Answer

B — Award package.

58. Ethics require you to:

  1. Share competitor pricing
  2. Avoid collusion and keep bid data confidential
  3. Bid shop
  4. Ignore affidavits
Answer

B — Professional conduct.

59. The safest way to handle ambiguous specs is to:

  1. Guess
  2. Submit an RFI and price per clarified direction
  3. Ignore
  4. Delete the work
Answer

B — Create a paper trail.

60. During the exam, if a question mentions addenda, alternates, bonds, or prevailing wage, you should:

  1. Check the “Liens” tab
  2. Go to your “Estimating/Bidding/Public Works” tab and scan highlights
  3. Pick C
  4. Call a friend
Answer

B — Your tabbed NASCLA pages hold the speed answer.

Next: Section 9 — Recordkeeping & Taxes →