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Unformatted text preview: responsible bidder with the lowest bid price • Request for Proposal (Notice to Bidders) for public announcement • Pros: – Competition ensures lowest responsible price. – All bidders are treated equally • Cons: – Purposely low bid (zero or negative profit) – Frequent change orders may be resulted – Plans and specifications must be totally completed prior to bid advertisement long project duration 18 Selective Bidding (Prequalification) • Reduced number of prospective bidders • Win-win situation: The contractor does not prepare a bid and incur the inherent cost unless he can qualify. The owner does not find himself in a position of being under pressure to accept a low bid from an incompetent firm. • Major prequalification parameters of the bidders: – Technical competency of similar types of construction – Past project experience – Current financial...
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This document was uploaded on 01/28/2014.

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