archoverflow
LIBRARY › THE BIDDING PROCESS

The Bidding Process

ARE 5.0 StudyTechnicalbiddingcontractsfinanceprocurementmoneymember

Definitions

Invitation to Bid: Bid Documents sent out to a specified list of people (Contractors) for bid

Base Bid: Money stated in the bid for which the bidder offers to do the work. This sum does not include any alternates in the bid

Advertisement of Bid: Publicly advertising the bid documents. This is extremely popular on public projects and many times will be required anytime public (tax) money is being used to construct something. For example bridges, highways, or other public works projects.

  • Everything is public about these types of bids, including the date, time, and who is bidding.
  • Typically contains the name and location of the project, Architect, Owner, description of scope and major materials and construction systems.
  • It will not contain the Bid Form, which is included with the Instructions to Bidders in the Project Manual
  • This type of bidding process is meant to increase transparency and reduce any ability of ‘hidden deals’, kickbacks, or any other nefarious intent.
  • Typically, anyone is able to bid for these projects, however, the requirements will discount who is able to submit an actual bid. For example, years of experience or experience working with projects of a certain $ amount may preclude many from bidding.

Unit Price: An amount stated in dollars per unit, provided by the Contractor with the bid for adding or deleting specific portions of the Work. This could be by weight, volume, or another measurement metric and can sometimes scale based on the amount of work.

Bona Fide Bid: A bid that meets all the bidding requirements and is submitted (signed) in good faith by someone who is authorized (legally allowed) to do so.

  • The bid that is awarded is going to be the Lowest Acceptable Bona Fide Bid. (see note below).

Alternates: Money for specific items in the bid to add or remove to the base bid. This may be required by the bid documents for a certain scope of work, or may be proposed by the contractor if the bid documents requests ‘creative’ thinking or ‘value engineering’ approaches.

  • Can be Additive Alternates or Deductive Alternates

THIS ARTICLE IS FOR MEMBERS

A free ArchOverflow account unlocks the full article — and the rest of the member library with it. (Tools are separate and invitation-only; membership never includes them automatically.)

Join free Sign in

// ARCHOVERFLOW HAS RESET

We rebuilt ArchOverflow from the ground up on our own platform. Articles are back at their same addresses. Old accounts were retired — membership is new, free, and reopening shortly, and everyone signs up fresh. Thanks for your patience while the last pieces land.