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.
| Bidder | Base bid | Addenda listed | Security and bonding | Status |
| A | $3,985,000 | 1, 2, 3 | 10% bid bond, Consent of Surety | Compliant |
| B | $3,870,000 | 1, 2 | 10% bid bond, Consent of Surety | Non-compliant: addendum 3 missing |
| C | $3,940,000 | 1, 2, 3 | 10% bid bond, Consent of Surety | Non-compliant: qualified ("excludes winter heat") |
| D | $4,060,000 | 1, 2, 3 | Certified cheque, Consent of Surety | Compliant |
| E | Not opened | Not opened | Not opened | Late (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.