Construction Bids are written offers from contractors to undertake a construction job in return of a certain sum of money.
What is Construction Bids?
Construction Bids are written offers from contractors to undertake a construction job in return of a certain sum of money. Bids can be either Negotiated Bid, Limited Competition, Selective Bid or Open Competition Bid. This article will talk about Negotiated Bid while the other will be written in fupcoming posts.
Negotiation Bid
In this method the price to be paid in return of the work to be done is negotiated with a single contractor. This , obviously, does not provide the owner with a comparative prices. Though the cost of a work will be higher in this method, an owner may expect some advantages from employing a particular contractor whose policies and methods are known and who has in the past proved capable of fulfilling his obligations. The higher cost may be offset by better quality , early completion, and smooth administration.
The negotiated construction bid procedure can be adopted to the owner’s advantage if the chosen contractor is one in which the Owner and the Engineer have confidence, and which is of known integrity and reliability. Moreover, the work to be carried out is within his special scope and experience.
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