Tools for Ensuring Contractor Performance on Public Construction Projects

Non Accredited

   CH Classroom 7.5 Icon

Objectives and Intended Outcomes

Upon successful completion of this course participants will be able to:

  • Identify the protection offered by various types of surety bonds and how to obtain maximum protection from them
  • Structure bidder responsibility criteria in order to limit the chance of an unqualified contractor being awarded the project
  • Articulate the key components of a contractor performance evaluation program that can be used to find a low bidder not a responsible contractor
  • Write addenda to the bid documents that are clear and easily understood by bidders
  • Identify key costs that may be included in an agency’s establishment of a daily liquidated damages amount

Intended Audience

General Audience 


Awarding to the low bidder on a public construction project means the public agency gets the lowest price and the best deal for the taxpayers. Right? Or does it? There are many challenges with ensuring effective contractor performance on low bid projects. So are public agencies at the mercy of unscrupulous and less than qualified contractors? Fortunately, there are a number of tools available that can help protect public agencies on public construction projects. In this course, we will examine a host of key practices, protections, and strategies that help protect the public’s interests and provide leverage to help ensure the contractor performs satisfactorily. This course complements When Bad Things Happen to Bids: Strategies for Ensuring a Successful Public Construction Project and Best Practices in Developing Public Construction Bid Documents.

Course Outline

Is the Contractor Qualified?

  • Pre-qualify Bidders
  • Establish Bidder Responsibility Criteria
  • Specification Qualification Requirements
  • Subcontractor Approval Process

How Can You Manage the Bidding Process?

  • Develop Clear Bidding Documents
  • Optional vs. Mandatory Pre-Bid Meetings
  • Craft Clear Addenda
  • Accept Bidder’s Claim of Error

How Can Bonding Companies Help?

  • Bid Bonds and Other Bid Guaranties
  • Performance Bonds
  • Payment Bonds
  • Warranty Bonds

What Financial Tools Are at Your Disposal?

  • Withhold Retainage
  • Determine and Assess Liquidated Damages
  • Assess Actual Damages
  • Obtain Release of Claims Prior to Payments

What Are Effective Construction Management Practices?

  • Avoid Front-Loaded Schedule of Values
  • Inspect Work Performed
  • Review Pay Applications for Work Completed
  • Manage Claims Process
  • Control Change Orders Approved

Can You Evaluate Contractor Performance?

  • Features of Effective Contractor Performance Evaluation Programs
  • Using Results from Contractor Evaluations

When Can You Award Based on Price and Qualifications?

  • Best Value Procurement
  • Design-Build
  • Construction Manager at Risk
  • Job Order Contracting


1 Day Course

Textbook provided

Key 7
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