Public Construction Contract Bidding Process

A construction project generally has a bidding process open to the public that will involve small and mid-sized business contractors bidding to apply for the job and revenue. Understanding the process is important for the company, agency and individual that becomes part of the bid and the project so that there is little confusion later.

It is important to know how to progress through the bidding process to acquire a project. It is generally imperative for the sake of revenue and maintaining worth to review a job before entering the bidding process. If the project does not appear to be worth the money or time involved, it is best to pass on it. Additionally, the owner or company needs to know if the job duties are those that are possible by the contractor. If the tools, equipment, software or manpower requires more than the agency is able to provide, then the bid is too much to become part of currently.

Competitive Bidding

When living in certain states, a company must engage in the competitive bidding process over a public contract for work. There exists a proposal procedure as well which is possible. This is for new projects. If the job is a current one that is up for renewal, the same contractor may remain on the job. When there is a new program that runs through the county, a local town, certain special districts and even if it involves a political subdivision, the process is generally a competitive award to the best fit for a licensed contractor.

Pricing of the Contract

For public construction contracts, the bidding must remain competitive for prices that may provide revenue over $300,000 for construction and $75,000 for electrical. Competitive awards may ensure more contractors become involved in the process and may generate more interest. The procedure of public bidding still has sealed bids issued by each contractor as a response submitted to request for the proposal available. Some sealed bids are for submitting in response to qualifications requests and others submittal for negotiations in competition. It is important that each contractor follow the correct procedure, and this may demand research to avoid any violations or revoked bids.

Protection of the Public

To protect the public, competitive bidding statues exist. For the goods and services industry, the laws provide for protection to the consumer by driving prices to the lowest costs available. This happens through competitive bids on the part of the contractor. Benefits exist with both the contractor and the owner of the project during this process and once the job starts. Fair consideration happens with the offer, and the contract will guarantee the project if the bid is the lowest. This is a promise of work for contractors bidding on public projects. It also ensures the best obtainable goods or services at a price the owner is willing to pay.

Public Advertisement in the Bidding Process

When competitive bidding is necessary, the process entails public advertisements for the submission when there are bids sealed for the contract. This also involves an opening of bids to the public and awards for the contracts to the lowest bidder responsible for taking up the contracted work when winning. The process has many regulations attached and these are obligatory without deviation. It is important for the contractor to know where to look to find public bid jobs. Additionally, the entity behind the job must ensure that contractors are aware that the work is available. This generally leads to advertising for the work with contractors to bid on the project.

The Notice to the Contractor

When a job for work is available, the entity behind the project usually provides any contractor that may bid on the work with more details than the company may expect. It is important to know if the agency or person is the best fit for the project. The notice usually contains other details such as the deadlines for work and what services the contractor will need to perform. Contact with the entity is part of the notice as well as the pre-bid meeting takes place. The request for a proposal is within the type of solicitation the entity engages in as explained in the notice.

Public Construction Contract Legal Support

While the bidding process is generally a simple negotiation with sealed submissions, there are problems that may occur with the bid. To avoid denials or defects in the bid, the contractor may need to hire a lawyer for further assistance.

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Disclaimer: Every effort has been made to ensure the accuracy of this publication at the time it was written. It is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. Readers considering legal action should consult with an experienced lawyer to understand current laws they may affect a case.

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