This should be clarified in the bid. However, since in this case the buyer is asking for a website, they probably want the whole thing set up, including hosting. It's one of those "we want something, we have no idea how to do it, take care of everything for us" job requests.
In all the RAC work I did (before I discovered it was a slave labor market for buyers who knew squat and wanted fully functional eBay clones for $15), I always specified the deliverables in the bid request, and provided options in case I'd misunderstood the bid.
As with all market places, it's sometimes advantageous to put in a lower bid with limited functionality and make it clear variations will be extra cost - this is true whether you're a RAC coder or a multi-national bidding for a huge government contract.
I'd state that I could put together the website on my own provider for $X and band would be responsible for finding provider with same facilities, or for $X+Y, I'd do the lot (making sure they're clear that ongoing costs are their responsibility).
Aside: I made a little bit of money doing homework assignments for kiddies who will now never be a threat to my employment prospects but it wasn't worth it in the end. It's much the same as with the nags - you can make money at the track betting on them but only if you invest many hours studying the form. I'd much rather spend that time with the family (well, shared between the family and SO :-).