In the construction industry, there are two types of bidding processes; public and private. As Clearwater construction attorneys, we know how beneficial it is for contractors to understand the difference between these two types of projects before getting involved with a bid.
Private Bidding Projects
Private bidding is sometimes looked at as a quality driven action, rather than a price driven action which is typically the norm. In private bidding, a contractor who has been invited to bid was evaluated by their previous work, experience, and reputation. These criteria are factored in to see how the contractor handles their workload, and if they have proven to the owner that they can finish a project in a timely manner.
Public Bidding Projects
Public bidding projects, however, are more of a competitive process. By law, a large portion of federal, state, county, municipal, or school district projects require competitive bidding. This process is set in place to guarantee the lowest construction price for the public project. With these types of projects, you usually see tax revenue or publicly issued bonds as the main source for funding, whereas with private projects the owner is responsible for funding. The contract being awarded to the lowest bidder is a long-standing practice in the construction industry, because it indicates that public money is being handled in a responsible manner. Because of this, most public bid projects are required to be advertised for at least 30 days prior to deadline in a newspaper or on a government website.
Unlike private bidding projects, it’s important to remember that a public bidding project may have varying bidder requirements, such as being a pre-qualified bidder or being invited to bid. This can cause a public bid to resemble a private bid, however, the bid will still follow public bidding laws. It’s recommended you seek the counsel of your Clearwater construction lawyer when determining your eligibility for a bid.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.