What is the usual purpose of bid security submitted with a construction tender?
Correct answer: C. To discourage withdrawal after tender submission
- A. To guarantee the quality of completed workmanship
- B. To pay the contractor's monthly site expenses
- C. To discourage withdrawal after tender submission
- D. To cover defects discovered after maintenance
Explanation
Bid security protects the client if a successful bidder withdraws or refuses to sign the contract under the tender conditions. It is different from a performance bond and retention money, which apply mainly after award.
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About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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