How to Evaluate Contractor Bids: Irregular Bids, Withdrawals, and Award

Bid evaluation is one of the most rule-bound parts of ExAC Section 4, which makes it learnable. To evaluate contractor bids, the architect checks each bid against the bid documents, rejects any bid that is non-compliant, reviews the compliant ones and reports to the client in writing. The client, not the architect, picks the contractor and awards the contract. In our experience, candidates lose marks here by treating the lowest number as the winner. This guide from Examitect, an independent ExAC prep platform unaffiliated with the CACB, walks through objective 9 the way CHOP Chapter 6.5 sets it out.

Key Takeaways

What to know about bid evaluation before Section 4.

  • Objectives 9.3 and 9.4 are the bidding core. The Bidding and Contract Negotiations study notes cover all of objective 9.
  • Compliance comes before price. CHOP Chapter 6.5 says any non-compliant bid should be rejected, so the lowest compliant bid is not always the lowest number on the sheet.
  • A bid is a contract in its own right. CHOP calls it the "bid contract", and Chapter 3.8 names the Canadian idea of Contract A and Contract B.
  • Bids are irrevocable for a set period. Withdrawing inside it can forfeit the bid bond.
  • The architect advises, the client decides. CHOP says recommending that the client sign with a particular contractor is legal advice for the client's lawyer. See the CHOP reference guide.
  • Award by Letter of Acceptance. Not a letter of intent, and on CCDC contract forms.

Overview

Bid evaluation at a glance

Exam sectionSection 4, about 130 multiple-choice questions in three hours
Objectives9.3 awarding a construction contract, 9.4 evaluating the bids
Core readingCHOP Chapter 6.5, Construction Procurement
Who selects the contractorThe client, on the architect's written report
How the contract is awardedA Letter of Acceptance from the client

What objective 9 asks about bidding

Objective 9, Bidding and Contract Negotiations, opens Section 4. The ExAC Framework Document (p.5) gives Section 4 as about 130 multiple-choice questions with no short answers, and its list of item types (p.6) includes matching, ordering and completion.

Appendix 1 of the 2026 Preparation Guide (p.20) splits objective 9 into four general objectives. Delivery and contract types (9.1 and 9.2) are in our post on project delivery methods; this post covers the bidding core:

Specific objectiveWhat it asksWhere CHOP answers it
9.3.1Responsibilities of each party in the bidding process6.5, Analysis of Bids and Contract Award
9.3.2Role of local construction associations and bid depositories2.1 and 6.5, Construction Associations and Bid Depositories
9.3.3Methods for awarding a construction contract6.5, open, invited and direct selection
9.3.4Phases of a typical bidding process6.5, the five procurement steps
9.3.5Documentation required for each phase6.5, bid package, addenda, Summary of Bids, Letter of Acceptance
9.4.1Assess the conformity of the bid submissions6.5, Bid Types
9.4.2The architect's responsibility in making recommendations6.5, Analysis of Bids, and 3.8, bidding risk

Expect scenario items: a stack of bids, one defect each, and which one the client can accept. The chapter mapping is ours; the Guide cites no chapters. Our CHOP study guide sets the reading order.

The tendering process as CHOP 6.5 describes it

CHOP Chapter 6.5 deals mostly with design-bid-build and says calling bids "must follow strict rules", because departing from accepted practice can breach the Canadian common law of tendering. Procurement runs in five steps: plan the method, prequalify the bidders, conduct the tender, evaluate the bids and award the contract. (The CCDC dropped "tender" for "bid" in the early 1980s, but the words are used interchangeably.)

Three ways to choose a contractor

  • Open competitive bids (public tender). Bidders are usually not screened, price alone may decide, and the method is common where public funds are involved.
  • Invited competitive bids. The client invites known or prequalified contractors, often using CCDC 11, the Contractor's Qualification Statement. Prequalified bidders should be roughly equal, so the contract goes to the lowest.
  • Direct selection. The client negotiates with one contractor against a detailed cost estimate.

The bid package and instructions to bidders

For stipulated price work, bids are called once the construction documents are complete. CHOP lists four things the instructions to bidders must state: what makes a bid compliant, whether and when bids may be withdrawn, whether pre-award negotiation is allowed, and every criterion for choosing the successful bidder.

Addenda, bid period and closing

Bidders' questions are answered only in writing, to every bidder, through numbered and dated addenda that become contract documents once the contract is signed. The last addendum should go out no later than four working days before closing, or the bid period should be extended. CHOP suggests four to six weeks for a large public tender, two for a small invited one, no Friday or Monday closings, and a time stated as "before 3:00 P.M.".

At the opening, only the bidder's name, the base bid and the bid security are announced; alternative prices need analysis first. Subtrade prices may come through a bid depository run by the local construction association, which CHOP Chapter 2.1 says is still used in British Columbia and mandated by legislation in Quebec.

Bid security and bonds

InstrumentWhat it guaranteesTypical amount and form
Bid bondThe bidder will sign if accepted in time; otherwise the surety pays the price difference, up to the bond amount.5% to 10% of estimated construction cost, 2.5% on very large projects; CCDC 220
Consent of SuretyThe surety will issue a performance bond if the bidder wins (also called an Agreement to Bond).A signed letter from the surety
Performance bondCompletion if the contractor defaults, but not labour and material claims.Often 50% or 100% of the contract amount; CCDC 221
Labour and material payment bondPayment of the contractor's subcontractors and suppliers.CCDC 222

A certified cheque or an irrevocable letter of credit can also serve as bid security.

Compliant, irregular and qualified bids

CHOP sorts bids into compliant and non-compliant. A non-compliant bid is any irregular bid: informal, non-responsive, incomplete, improperly qualified or conditional. Five defects make a bid non-compliant:

DefectExample
Confidentiality not metThe bid arrives in an unsealed envelope.
Addenda not acknowledgedThree addenda were issued and the form lists two.
No bid securityThe bid bond or other security is missing.
Not properly signed or sealedThe bid form is unsigned, or the corporate seal is missing.
Bonding requirements missingNo Consent of Surety or Agreement to Bond.

CHOP's rule is short: any bid deemed non-compliant should be rejected. A qualified bid, one that adds its own condition such as "excludes winter heat", is improperly qualified or conditional, because that bidder has priced a different job. A late bid goes back unopened, and CHOP says no reason for lateness, such as an accident or traffic, can be accepted.

The privilege clause no longer saves a bad award

Bid packages used to carry a privilege clause: "The lowest or any tender shall not necessarily be accepted." CHOP says this clause is no longer appropriate, citing an April 1999 Supreme Court of Canada decision: owners are expected to award in line with the terms of the tender call and give no bidder an unfair advantage. Accepting a non-conforming bid breaches the duty of fairness to the other bidders, and a privilege clause does not permit it.

Contract A and Contract B

All of this carries legal weight because of a Canadian idea that CHOP Chapter 3.8 names directly: Contract A, the bidding contract, and Contract B, the construction contract. Chapter 6.5 says submitting a bid is a legally enforceable contract between bidder and owner, a "bid contract" that lasts until the acceptance period ends. So the owner already has obligations, such as following its own tender call, before Contract B exists. CHOP refers architects to Sandori and Pigott's Bidding and Tendering: What Is the Law? for the case law.

Withdrawals, mistakes and the period of irrevocability

Withdrawal questions turn on timing. CHOP Chapter 6.5 says bidders cannot withdraw during the period of irrevocability, usually the period stated in the bid bond, and that doing so permits forfeiture of the bid deposit or bond.

When it happensWhat CHOP says
Before closingThe instructions to bidders govern whether bids may be withdrawn and under what circumstances.
After closing, inside the irrevocable periodThe bid cannot be withdrawn; trying to do so can forfeit the bid bond or deposit.
A bidder reports a serious mistakeGet legal advice. CCDC 23, quoted in CHOP, says that for a genuine and significant mistake the bid should not be accepted and the bidder should not be penalized.

Two edge cases: if a snowstorm keeps most bidders away, closing may be postponed and bids received are returned unopened. If only one bid arrives, the client may return it unopened or negotiate with that bidder.

CCDC 23, A Guide to Calling Bids and Awarding Construction Contracts, is not on the 2026 Preparation Guide's reference list, so learn it through CHOP.

How to evaluate a set of bids and recommend award

CHOP is clear on roles: if it is part of the agreed services, the architect may assist in analyzing the bids and reporting, but the client selects the successful bidder. RAIC Document 6 lists this work in Schedule A, items 8.1 to 8.9, from prequalification to assembling the contract for legal review (numbering from the 2022 edition we hold; the exam cites the 2018 edition, revised 2021).

An illustrative bid tabulation

This is our own example, not an exam question: five bids due before 3:00 P.M., three addenda and a construction budget of $4,100,000.

BidderBase bidAddenda listedSecurity and bondingStatus
A$3,985,0001, 2, 310% bid bond, Consent of SuretyCompliant
B$3,870,0001, 210% bid bond, Consent of SuretyNon-compliant: addendum 3 missing
C$3,940,0001, 2, 310% bid bond, Consent of SuretyNon-compliant: qualified ("excludes winter heat")
D$4,060,0001, 2, 3Certified cheque, Consent of SuretyCompliant
ENot openedNot openedNot openedLate (3:04 P.M.), returned unopened

The lowest number is Bidder B, and it cannot be accepted. The lowest compliant bid is Bidder A at $3,985,000, under budget. Bidder D's certified cheque is valid if the bid documents allow it, and Bidder E's price is rightly never known.

The steps

Step 1
Receive bids and screen out late ones.

Time-stamp, date-stamp and initial each bid on receipt, and return late bids unopened.

Step 2
Open the bids and record them.

Announce only the bidder's name, base bid and bid security, and record them on a Summary of Bids form.

Step 3
Check every bid for compliance.

Confirm it was sealed, lists every addendum, carries the bid security, is signed and sealed, and includes the bonding documents.

Step 4
Set aside the non-compliant bids.

Reject any bid that is incomplete, qualified or conditional, however low its price.

Step 5
Review the compliant bids in detail.

Check taxes, schedule, listed subcontractors and suppliers, alternatives and unit prices, and follow up references.

Step 6
Compare the lowest compliant bid with the budget.

If it is over, apply the over-budget terms of the client-architect agreement, such as RAIC Document 6, Article A19 and GC 4.4 to 4.6.

Step 7
Report to the client in writing.

Give the findings and a recommended course of action, and leave the award decision to the client and its lawyer.

Where the architect's advice stops

CHOP asks for a written report comparing all price and bid information and recommending a course of action, usually the contractor that most closely meets the criteria. Then it draws a line: the architect limits advice to whether each bid is compliant, the amounts, and that on the face of the documents there is no obvious reason to accept or reject it. Recommending a contract with a particular contractor is legal advice for the client's lawyer. Chapter 3.8 adds that awarding to anyone but the lowest bona fide bidder can lead to legal action, and that legal advice is typically excluded from professional liability insurance.

When the lowest compliant bid is over budget

If the client will neither raise the budget nor abandon the project, CHOP gives two routes. Above the threshold in the client-architect agreement, Document 6 has the architect revise the documents and re-bid at no extra fee when asked; below it, alternatives and a negotiated price with the lowest bidder are generally possible. Article A19 sets the threshold (15% in the 2022 edition). GC 4.6 excludes overages from extraordinary market conditions or factors the architect could not reasonably foresee or control.

Award and forming the construction contract

Award is where Contract B begins. CHOP says it is usually done by a Letter of Acceptance from the client, which lets the contractor start while the formal contract is drafted and signed. Bids must be accepted or rejected as submitted.

  • Letter of Acceptance, not letter of intent. CHOP says a letter of intent can be misleading, because it aims to bind the contractor with no real commitment, and should be avoided.
  • Notify unsuccessful bidders promptly. It frees their bonding, staff and subcontractors to bid other projects.
  • The architect usually prepares the contract. CHOP recommends CCDC forms, at least two signed originals (client and contractor) and a copy for the architect. CCDC 20 is the guide to completing CCDC 2.

What carries over from the bid into CCDC 2

In CCDC 2 (2020), Article A-2.1 says the Contract supersedes prior negotiations and agreements, including bid documents not expressly listed in Article A-3, Contract Documents, which is where addenda are listed by title, number and date. Under GC 3.6, the owner may object to a proposed subcontractor or supplier, for reasonable cause, only before signing the Contract. GC 10.1 ties the taxes and duties in the Contract Price to those in effect at bid closing. Our CCDC 2 vs RAIC Document 6 post and the CCDC 2 reference guide cover the rest.

Traps examiners set

  • Lowest number versus lowest compliant bid. If a lower bid has a defect, the answer is the lowest compliant one.
  • "The architect awards the contract." The client selects and awards; the architect reports and recommends.
  • "The privilege clause allows it." It never allows accepting a non-compliant bid.
  • "Accept the late bid, the traffic was bad." Late bids go back unopened, whatever the reason.

See where Section 4 candidates lose marks and the Section 4 project management guide for the construction phase. Learn Chapter 6.5, tie it to the two contracts, and objective 9 becomes some of the more predictable marks on the exam.

FAQ

Evaluating contractor bids FAQ

CHOP Chapter 6.5 treats a bid as non-compliant if it is not sealed, does not show every addendum, lacks the bid bond or security, is not properly signed or sealed, or is missing bonding documents such as a Consent of Surety. Incomplete, qualified and conditional bids are non-compliant too, and any non-compliant bid should be rejected.

A contractor cannot withdraw a bid during the period of irrevocability, which is usually the period stated in the bid bond, and trying to do so can forfeit the bid bond or deposit. If the bidder reports a genuine and significant mistake, CHOP recommends legal advice and cites CCDC 23, which says such a bid should not be accepted and the bidder should not be penalized.

Contract A is the bidding contract formed between the owner and a bidder when the bid is submitted, and Contract B is the construction contract signed with the successful bidder. CHOP Chapter 3.8 calls this the uniquely Canadian concept in tendering law, and it is why the owner must follow its own bid rules before any construction contract exists.

A privilege clause such as "The lowest or any tender shall not necessarily be accepted" does not let the owner accept any bid. CHOP Chapter 6.5 says the clause is no longer appropriate after a 1999 Supreme Court of Canada decision, owners must award in line with the tender call, and the clause never permits accepting a non-compliant bid.

The owner, called the client in CHOP, chooses the successful bidder and awards the contract. The architect reviews the bids and reports in writing with a recommended course of action, but CHOP says advising the client to contract with a particular contractor is legal advice that belongs to the client's lawyer.

CHOP Chapter 6.5 says bid bonds are usually between 5% and 10% of the estimated construction cost, with 2.5% considered appropriate on very large projects. CCDC 220 is the recommended bid bond form.

CHOP Chapter 6.5 says the last addendum should be issued no later than four working days before bid closing, so every bidder gets the same information in time. If that is not possible, the bid period should be extended.

A construction contract is usually awarded by a Letter of Acceptance from the client, which lets the contractor start while the formal contract is drafted and signed. CHOP advises avoiding a letter of intent, notifying unsuccessful bidders promptly and using the standard CCDC contract forms.