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Estimating & Biddingaka: proposalaka: tender

Bid

In Plain English

A contractor's formal price offer to complete a construction project.

Definition

A bid is a formal offer submitted by a contractor specifying the price and terms under which they will perform a defined scope of construction work. Bids are submitted in response to bid documents issued by an owner or general contractor. A bid represents a binding offer for a specified period after submission.

Why It Matters in Bidding

The bid is the central document the entire platform revolves around: it is the binding price offer that determines whether a contractor wins work and at what margin. Because a bid is typically irrevocable for a stated period after submission, errors in the takeoff, subcontractor coverage, or markup get locked in, making accuracy and complete scope coverage critical. Owners and GCs evaluate bids not only on price but on responsiveness and the bidder's qualifications, so a low number alone does not guarantee an award.

Example

Three general contractors submitted bids for the medical office fit-out, and the owner awarded the project to the second-lowest bidder after the apparent low bid was found non-responsive for omitting required subcontractor listings.

Related Terms

Base BidBid FormProposalSealed Bid

Frequently Asked Questions

Bid documents usually state a period, often 30, 60, or 90 days, during which the bid is irrevocable and the contractor must honor its price if awarded. A bid bond commonly backs this commitment. This window lets the owner evaluate submissions and award without the price changing, so contractors must hold their pricing firm.
A responsive bid complies with all material requirements of the bid documents, including proper forms, signatures, bid security, addendum acknowledgment, and required attachments like subcontractor lists. A non-responsive bid omits or deviates from these requirements and can be rejected even if it is the lowest price, especially on public projects where rules are strict.
Not necessarily. On hard-bid public work the lowest responsive, responsible bidder typically wins, but the bid must still be complete and the contractor qualified. On private and best-value projects, owners weigh price alongside schedule, experience, and approach, so a higher bid can win if it offers better overall value.

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