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TENDERING MCQs – CHAPTER 9 DAE

1. Encircle the most suitable answer.
What is one of the prerequisites for tendering related to project scope?

(A) Procurement strategy


(B) Clear understanding


(C) Comprehensive plan


(D) Detailed drawings




2. What should the client have for the project related to budget and financing?

(A) Realistic budget


(B) Detailed drawings


(C) Legal compliance


(D) Land acquisition




3. What does administrative approval refer to?

(A) Land acquisition


(B) Detailed estimate


(C) Formal acceptance


(D) Technical sanction




4. What is a disadvantage of open tendering?

(A) Long tender list


(B) Uneconomic use of resources


(C) All of the above


(D) Questioned public accountability




5. Who is responsible for obtaining administrative approval?

(A) Engineering department


(B) Competent authority


(C) Procurement strategy


(D) Technical authority




6. What is a tender document?

(A) Contract criteria


(B) Pricing documentation


(C) Work details


(D) Qualification criteria




7. What is a notice inviting tender?

(A) Project scope and budget


(B) Instructions for bid submission


(C) Terms and conditions for contractors


(D) Document inviting contractors




8. What does the price of tender documents cover?

(A) Financial security deposit


(B) Project scope and timelines


(C) Preparation and printing


(D) Approaching bidders' commitment




9. What is earnest money in tendering?

(A) Sum of money for compliance guarantee


(B) Percentage of project cost


(C) Amount charged for bid documents


(D) Financial security deposit




10. What is the purpose of security money in a construction contract?

(A) Financial guarantee for completion


(B) Cover additional costs


(C) Discourage non-serious bidders


(D) Ensure compliance with terms




11. What is the advantage of selective tendering?

(A) Reduced cost of tendering


(B) Shorter tender periods


(C) All of the above


(D) Better management of the process




12. What percentage of the project cost is typically fixed for earnest money?

(A) 20-25%


(B) 5-7%


(C) 10-15%


(D) 2-2.5%




13. What is the advantage of open tendering?

(A) New contractors can compete


(B) No favoritism in selection


(C) Ensures good competition


(D) All of the above




14. What percentage of the project cost is typically fixed for security money?

(A) 2-2.5%


(B) 5-7%


(C) 10-15%


(D) 20-25%




15. What factors influence the choice of tender invitation method?

(A) Nature and size


(B) All of the above


(C) Availability of contractors


(D) Budget and timelines




16. What is the advantage of open tendering in selecting contractors?

(A) Confidence in completion


(B) Reduced cost


(C) Shorter periods


(D) No favoritism




17. What is a disadvantage of selective tendering?

(A) All of the above


(B) Higher tender prices


(C) Favoritism in shortlisting


(D) Reduces availability of work




18. What is an advantage of negotiated tendering?

(A) Questioned public accountability


(B) Reduces availability of work


(C) Early commencement of work


(D) Favoritism in shortlisting




19. What is a disadvantage of negotiated tendering?

(A) Questioned public accountability


(B) Reduces availability of work


(C) Higher cost of work


(D) None of the above




20. Which method allows any interested contractor to tender?

(A) Negotiated


(B) Open


(C) Selective


(D) Global




21. Which method is used for specialized work or tight deadlines?

(A) Open


(B) Selective


(C) Negotiated


(D) Global




22. What is a disadvantage of negotiated tendering?

(A) Lower prices


(B) Shorter periods


(C) Risk reduction


(D) Reduced availability




23. When is selective tendering used?

(A) Easily met requirements


(B) Low value projects


(C) Complex projects


(D) Closed-door work




24. Which document provides guidelines for preparing and submitting a bid?

(A) Invitation to Tender


(B) Technical Specifications


(C) General Conditions of Contract


(D) Instructions to Bidders




25. What is the purpose of the security deposit?

(A) Convert into security deposit


(B) Provide financial capacity


(C) Refund the earnest money


(D) Punish the contractor




26. What is the purpose of the bid bond?

(A) Financial guarantee


(B) Side-by-side comparison


(C) Security deposit


(D) Construction project




27. What is the purpose of the comparative statement?

(A) Verify completeness


(B) Compare tenders


(C) Confirm acceptance


(D) Outline terms and conditions




28. What is the purpose of an extension of time in a construction contract?

(A) Resolve disputes


(B) Secure advance payment


(C) Ensure project quality


(D) Grant flexibility in completion




29. What are liquidated damages in a construction contract?

(A) Termination process


(B) Retention amount


(C) Penalty imposition


(D) Pre-agreed payment




30. What is a variation order in construction?

(A) Project authorization


(B) Design document


(C) Owner's approval


(D) Scope changes




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