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Division 1 — General Requirements

103AWARD AND EXECUTION OF CONTRACT

NC · 2024 Standard SpecificationsBook pages 2933View official source ↗

1-21 (Q) Conviction of any employee of the company, of any applicable state or federal law, may

be fully imputed to the business firm with which he is or was associated or by whom he was employed or with the knowledge or approval of the business firm or there after ratified by it.

R.Being debarred from performing work with other Fed eral, State and city agencies.
S.Failure to perform guaranty work within the terms of the contract.
T.Failure to make prompt payment in accordance with Article 109- 4. Upon a determination that a contractor or subcontractor should be disqualified for one or more of the reasons listed above, the Department may, at its discretion, remove all entities which are considered as a single entity as described in Subarticle 102 -15(E).

103-1 Consideration of Bids

After the bids are opened and read, they will be compared on the basis of the summation of the products of the quantities shown in the bid schedule by the unit bid prices. The results of such comparisons will be immediately available to the public. In the event of errors, omissions, or discrepancies in the bid prices, corrections to the bid prices will be made in accordance with Article 103-2. Such corrected bid prices will be used for the co mparison and consideration of bids. The right is reserved to reject any or all bids, to waive technicalities, to request the low bidder to submit an up- to-date financial and operating statement, to advertise for new bids or to proceed to do the work otherw ise, if in the judgment of the Department , the best interests of the State will be promoted thereby.

103-2 Correction of Bid Errors

The provisions of this article shall apply i n waiving irregularities and correcting apparent clerical errors and omissions in the unit bid price and the amount bid for bid items.

A.Paper Bid
1.Omitted Unit Bid Price --Amount Bid Completed--Quantity Bid on is One Unit In the case of a bid item for which the amount bid is completed, but the unit bid price is omitted and the quantity shown in the proposal for the bid item is only one unit, the unit bid price shall be deemed to be the same as the amount bid for that bid item 31 and shall constitute the contract unit price for that bid item.
2.Omitted Unit Bid Price --Amount Bid Completed--Quantity Bid on i s More Than One Unit In the case of a bid item for w hich the amount bid is completed (extension of the unit bid price by the quantity) but the unit bid price is omitted and the quantity shown in the proposal for the bid item is more than one unit, the unit bid price shall be deemed to be the amount derived by dividing the amount bid for that item by the quantity shown in the proposal for that bid item and shall constitute the contract unit price for that bid item.
3.Discrepancy in the Unit Bid Price and the Amount Bid In the case of a bid item in which there is a discrepancy between the unit bid price and the extension for the bid item (amount bid), the unit bid price shall govern. As an exception to the above, on bids for contracts not funded with any f ederal funds, the extension for the bid item (amount bid) shall govern when the discrepancy consists of an obvious clerical mistake in the unit bid price consisting of the Sectio n 103

1-22 misplacement of a decimal point. The correction to the unit bid price will be made

only when the following two conditions are met:

a.The corrected unit bid price multiplied by the quantity equals the amount bid for the bid item.
b.The corrected unit bid price is closer to the average of the E ngineer's estimate and the individual bids for the contract item than the uncorrected unit bid price.
4.Omitte d Unit Bid Price and Omitted Amount Bid --Deemed Zero Bid
a.State Funded Projects In the case of omission of the unit bid price and the omission of the amount bid for any one item except Mobilization and , in the case of the omission of the amount bid where a lump sum price is called for, the amount bid and the unit bid price shall be deemed to be zero where the value of the omitted amount bid is 1% or less of the total amount bid for the entire project (excluding the omitted item). The value of the omitted am ount bid will be derived by determining the average of the E ngineer's estimate and the individual bids for that contract item. Where the unit bid price is deemed to be zero as provided in this subarticle, such zero unit bid price shall constitute the contract unit price for the affected bid item. Where the amount bid for a lump sum bid item is deemed to be zero except Mobilization , as provided in this subarticle, such zero amount bid shall constitute the contract lump sum price for that bid item. In th e case of omission of the amount bid for Mobilization , the bid shall be deemed irregular and may be rejected .
b.Federally Funded Projects In the case of omission of the unit bid price and the omission of the amount bid for any one item and, in the case of the omission of the amount bid where a lump sum price is called for , the bid will be considered nonresponsive and will not be considered for award.
5.Unit Bid Prices Containing More Than Four Decimal Places In the case of a Bid Item for which the amount bid co ntains more than 4 decimal places for the Unit Bid Price, only the whole number and the first 4 decimal places shall constitute the Contrac t Unit Price for that Bid Item.
6.Do not enter zero (0) in any unit price field unless zero is the intended bid for that item. Zero will be considered a valid bid. However, where zeros are entered for items that are authorized alternates to those items for which a non -zero bid price has been submitted, zeros will be deemed invalid.
7.When the proposal allows alternate bids, the bidder shall submit a unit or lump sum price for every item in the proposal other than items that are authorized alternates to those items for which a bid price has been submitted. Where the bidder submits a unit price other than zero for all ite ms of an authorized alternate, the Department will determine the lowest total price based on the alternate bid.
B.Electronic Bids
1.Enter a unit price in schedule of items . Totals will be generated automatically.
2.Data incorrectly entered may not be recognized , and the bid item may remain blank until entered correctly.
3.Enter no more than 4 decimal places for unit price.

1-23 (4) Do not enter zero (0) in any unit price field unless zero is the intended bid for that

item. Zero will be considered a valid bid. However, wh ere zeros are entered for items that are authorized alternates to those items for which a non -zero bid price has been submitted, zeros will be deemed invalid.

5.When the proposal allows alternate bids, the bidder shall submit a unit or lump sum price for every item in the proposal other than items that are authorized alternates to those items for which a bid price has been submitted. Where the bidder submits a unit price other than zero for all items of an authori zed alternate, the Department will determine the lowest total price based on the alternate bid.
6.Omitted Unit Bid Price and Omitted Amount Bid --Deemed Zero Bid
a.State Funded Projects In the case of omission of the unit bid price and the omission of the amount bid for any one item except Mobilization and, in the case of the omission of the amount bid where a lump sum price is called for, the amount bid and the unit bid price shall be deemed to be zero where the value of the omitted amount bid is 1% or less of the total amount bid for the entire project (excluding the omitted item). The value of the omitted amount bid will be derived by determining the average of the E ngineer's estimate and the individual bids for that contract item. Where the unit bid price is deemed to be zero as provided in this subarticle, such zero unit bid price shall constitute the contract unit price for the affected bid item. Where the amount bid for a lump sum bid item is deemed to be zero except Mobilization , as provided in this subar ticle, such zero amount bid shall constitute the contract lump sum price for that bid item. In the case of omission of the amount bid for Mobilization , the bid shall be deemed irregular and may be rejected .
b.Federally Funded Projects In the case of omission of the unit bid price and the omission of the amount bid for any one item and, in the case of the omission of the amount bid where a lump sum price is called for, the bid will be considered nonresponsive and will not be considered for award.

103-3 Withdrawal of Bids —Mistake

A.Criteria for Withdrawal o f Bid The Department of Transportation may allow a bidder submitting a bid pursuant to NCGS § 136-28.1 for construction or repair w ork to withdraw his bid after the scheduled time of bid opening upon a determination that:
1.A mistake was in fact made in the preparation of the bid.
2.The mistake in the bid is of a clerical or mathematical nature and not one of bad judgment, carelessness in inspecting the work site or in reading the contract.
3.The mistake is found to be made in good faith and was not deliberate or by reason of gross negligence.
4.The amount of the error or mistake is equal to or greater than 3% of the total amount bid.
5.The notice of mistake and request for withdrawal of the bid by reason of the mistake is communicated to the Engineer within 48 hours after the scheduled time of bid opening. Upon proper notification of a mistake and request for w ithdrawal of bid, Sectio n 103

1-24 the bidder shall submit within 48 hours written notice of mistake accompanied by

copies of bid preparation information to the Engineer. The notification of a mistake, request for withdrawal of bid and copies of bid preparation information shall be submitted to the State Contract Officer or Engineer.

6.The Department will not be prejudiced or damaged except for the loss of the bid.
B.Hearing by the Engineer If a bidder files a notice of mistake along with a request to withdraw his bid, the Engineer will promptly hold a hearing thereon. The Engineer will give to the requesting bidder reasonable notice of the time and place of any such hearing. The bidder may appear at the hearing and present the original working papers, documents or materials used in the preparation of the bid sought to be withdrawn, together with other facts and arguments in support of his request to withdraw his bid. The bidder shall be required to present a written affidavit that the documents presented are the original, unaltered documents used in the preparation of the bid.
C.Action by Chief Engineer A determination may be made by the Chief Engineer that the bidder meets the criteria for withdrawal of the bid as set forth in Subarticle 103-3(A) upon presentation of clear and convincing evidence by the bidder. The Engineer will present his findings to the Chief Engineer for action on the bidder's request. The Engineer will advise the bidder of the Chief Engineer’s decision before the Department 's consideration of award.
D.Bid Bond If a bid mistake is made and a request to withdraw the bid is made, the bid bond shall continue in full force and effect until there is a determination by the Chief Engineer that the conditions in Subarticle 103-3(A) have been met. The effect of the refusal of the Contractor to give payment and performance bonds within 14 calendar days after the notice of award is received by him, if award has been made by the Department after consideration and denial of the Contractor's request to withdraw his bid, s hall be governed by the terms and conditions of the bid bond.

103-4 Award of Contract

A.General The lowest responsible bidder will be notified by letter that his bid has been accepted and that he has been awarded the contract. This letter shall constitute the notice of award. Where award is to be made, t he notice of award will be issued within 60 days after the opening of bids ; except with the consent of the lowest responsible bidder , the decision to award or execute the contract may be delayed for as long a time as may be agreed upon by the Department and such bidder. In the absence of such agreem ent, the lowest responsible bidder may withdraw his bid at the expiration of the 60 days without penalty if no notice of award has been issued. Award of a contract involving any unbalanced bid price may be made in accordance with

Article 102 — 14.

B.Award Lim its A bidder who desires to bid on more than one project on which bids are to be opened i n the same letting and who desires to avoid receiving an award of more projects than he is equipped to handle, may bid on any number of projects but may limit the tota l amount of work awarded to him on selected projects by completing the form Award Limits on Multiple Projects for each project subject to the award limit. In the event that a bidder is the lowest responsible bidder on projects subject to the award limit a nd the value of such projects is more than the award limit established by such bidder, the Department will not award such bidder projects from among those subject to the award limit which have

1-25 a total value exceeding the award limit. The projects to be aw arded to the bidder will be

those projects on which award will result in the lowest total cost to the Department. In determining the lowest total cost to the Department, the options of rejecting a bid or readvertising for new bids may be considered. All bids submitted without the properly executed form Award Limits on Multiple Projects will not be subject to the award limit. In the event that there is a discrepancy between the completed award limit forms submitted by the same bidder for the different proje cts in a letting, the Department reserves the right to declare all such award limit forms invalid or to make such interpretation of the discrepancy as may be in the best interests of the Department. However, the presence of such discrepancy shall not be r eason for declaring any bid irregular nor shall it invalidate the conditions of his bid bond or bid deposit. Where a prequalified Contractor bids individually (as opposed to a Joint Venture) on one or more projects and bids on one of more projects as part of a Joint Venture, such individual bidder and such Joint Venture will be considered separate bidders in applying the provisions of this article.

1.Paper Bids This form will be bound within each proposal. This form will not be effective unless the amou nt is filled in and the form is properly signed.
2.Electronic Bids This form is located in the electronic submittal file. The bidder shall click on yes or no to indicate whether or not the bidder desires to limit the award.

103-5 Cancellation of Award

The Department reserves the right to rescind the award of a contract for any reason at any time before the receipt of the properly executed contract bonds from the successful bidder.

103-6 Return of Bid Bond Or Bid Deposit

Checks that have been furnished as a bid deposit by all bidders , other than the 3 lowest responsible bidders , will be retained not more than 10 calendar days after the date of opening of bids. After the expiration of such period, the checks that were furnished as a bid deposit will be returned to all bidders other than the 3 lowest responsible bidders. Checks that have been furnished as a bid deposit by the 3 lowest responsible bidders will be retained until after the contract bonds have been furnished by the successful bidder at which time the checks that were furnished as a bid deposit will be returned to the 3 lowest responsible bidders. Paper bid bonds will be retained by the Department until the contract bonds are furnished by the successful bidder after which all such bid bonds will be destroyed unless the individual bid bond form contains a note req uesting that it be returned to the bidder or the Surety.

103-7 Contract Bonds

The successful bidder, within 14 calendar days after the notice of award is received by him, shall provide the Department with a contract payment bond and a contract performance bond each in an amount equal to 100% of the amount of the contract. All bonds shall be in conformance with NCGS § 44A-33. The corporate surety furnishing the bonds shall be authorized to do business in the State.

103-8 Execution of Contract

As soon as possible following receipt of the properly executed contract bonds, the Department will complete the execution of the contract, retain the original contract and return one copy of the contract to the Contractor.

Source: North Carolina Standard Specifications for Roads and Structures, 2024 Edition. Pages 2933 of 857.