COMPETITIVE BIDDING &

CONTRACTING PROCEDURES
PUBLIC VS PRIVATE WORKS
Public Works
Works constructed for governmental agencies
such as sewers, pavements, bridges, public
buildings, and water works.
Public Works must usually be let only after
advertising
Contracts shall be given to the lowest
responsible bidder



PUBLIC VS PRIVATE WORKS
Public Works
Bidders must be two or more contractors,
open to the public


PUBLIC VS PRIVATE WORKS
Private Works
constructed by private parties, partnerships,
corporations such as buildings, hydraulic
plants, etc.
Private Works may be advertised, or it may be
let without advertisement
Open for public competition, competition
between selected parties, or by agreement
with a single contractor

PUBLIC VS PRIVATE WORKS
Private Works
Verbal acceptance of a proposal may
consummate the contract
Alternate bids, modifications of requirements,
adjustments, and betterments may be made
whenever the parties to the contract agree

NEGOTIATING CONSTRUCTION
CONTRACTS
Owner will invite bids based on
specifications, more or less complete, with
or without some contract form
Request for bids may be advertised or
notices may be sent to such parties

PURPOSE OF SOLICITING MORE
THAN A SINGLE BID
Secure for the public or the owner the
advantages of competition
Right to select a proposal which is
advantageous
Such competition induces contractors to
make close estimates on work, market for
labor, materials, etc.

CHARACTERISTICS OF RESPONSIBLE
BIDDER
The ability, capacity and skill of the bidder
to perform the contract and to provide the
service required
Whether the bidder can perform the
contract or provide the service promptly, or
within the time specified, without delay or
interference
CHARACTERISTICS OF RESPONSIBLE
BIDDER
The character, integrity, reputation,
judgment, experience and efficiency of the
bidder
The quality of the performance of previous
contracts or services
CHARACTERISTICS OF RESPONSIBLE
BIDDER
The quality, availability and adaptability of
the supplies or contractual services as the
particular use requires
The ability of the bidder to provide future
maintenance and service for the use of the
subject of the contract

DISHONESTY IN COMPETITIVE
BIDDING
The Competitive letting of construction
contracts is also open to dishonest
practices, and some instances are:
Contractors may combine with each other
with the intention of securing high prices.
Apparent Competition
Competition simulation

Compilation of suggestions by
architects, contractors and engineers in
order to secure low bids.
The contractor, when bound to a time limit
should be given the utmost freedom as to
the order and manner of doing the work.

Plans and specifications should give full
detail as to the required work, including all
dimensions, quantities, classes of
materials, etc.
Every condition to which the parties will be
bound by the contract should be submitted
to the bidders as a part of the contract
documents and specs.


Monthly estimates should include
materials delivered and suitably stored at
the site as well as material incorporated in
the work.
Some contract provisions

ADDITIONAL SUGGESTIONS FOR
PUBLIC WORKS
Engineers should not be permitted to bid
on work for which they have prepared
plans and specifications
No bids should be requested until funds to
pay for the work have been provided.

ADDITIONAL SUGGESTIONS FOR
PUBLIC WORKS
Bids should be opened and read in public
No contractor should be permitted to
withdraw a bid after the bid opening has
started
Illegibility or ambiguity should invalidate
any bid

ADDITIONAL SUGGESTIONS FOR
PUBLIC WORKS
When all bids are rejected, new bids
should not be requested on the same
plans and specifications without
readvertisement
Either bid bond or certificate certified
check should be required with each bid

ADDITIONAL SUGGESTIONS FOR
PUBLIC WORKS
Should emergency work be required, the
contractor should notify the engineer as
promptly as possible; and the engineer
should, if possible, furnish an inspector for
the work
Notice of work rejected by engineer should
be in writing
Completed work should be accepted or
rejected by engineer within a reasonable time


Contractors have rights as well and
these are protected by the independent
contractors act of 2006. To decide if a
contract is unfair or harsh, the courts may
consider:
the terms of the contract when it was
made
the relative bargaining strengths of the
parties to the contract



whether any undue influence or pressure
was exerted upon, or any unfair tactics
were used against, a party to the contract
whether the contract provides total
remuneration that is or is likely to be less
than that of an employee performing
similar work
any other matters the courts consider
relevant.