The Basic Bidding Process

If you're part of a government organization or operating a small, medium-sized, or large company, chances are you'll go through a lot of bidding process. Although procurement laws differ from state to state and by category, the basic bidding process is essentially the same for both the entity who requests for them and the entity at the receiving end.

Here are those five basic steps:

1. Specifications

The first step of the bidding process involves laying out the details of the desired job, from the individual parts or processes to the general outcome. The entity seeking the bids usually does this part. If a government office for example is planning to have a particular infrastructure built, it must first provide a document detailing the schematics, the materials, and other important information relevant to the project.

2. Request for bids

When the details have been set, the entity must now request for bids. There are a lot of ways this can be accomplished, including sending out invitations, posting in newspapers, or using online, social media platforms. The bids may come either from a pre-selected list of contractors or from any company who meet the client's qualifications.

3. Bidding

The bidding process starts when the project details have been furnished to the contractors. The process can differ from client to client. In some cases, companies will formally submit bids for the client to evaluate, and in others, the contractors will simply provide the total amount that they will perform a particular job for.

4. Reviewing the bids 

The client will usually set a specific time when bids will be accepted, and once the deadline has passed, will start evaluating them. How long it takes for the client to review the bids will depend on the number of total bids submitted to them.

5. Awarding the contract

The customer will then award the contract, after a thorough process of review and evaluation of the bids, to the winning company. The contractor with the lowest bid typically wins, especially if the price is the priority factor. However, in some instances, other factors might cause entities to overlook the price such as a longer, more reputable track record.