As Jacksonville construction attorneys, we know that in the construction industry, there are two different types of bidding processes, public and private. It’s extremely important for contractors to understand the differences between these two projects before they decide to get involved with a bid. In this article we will discuss the process of public bidding.
About the Public Bidding Process
Unlike private bidding, public bidding projects are very competitive. A big portion of federal, state, county, municipal, or school district projects require competitive bidding. Competitive bidding is used because it will guarantee the lowest construction price for any given public project. What makes the public bidding process stand out is that it’s common to see tax revenue or publicly issued bonds as the only source for funding. When it comes to private bidding projects, the owner is the one who is responsible for funding.
Why is the Lowest Bidder Chosen in Public Projects?
In the construction industry, the process of the contract being awarded to the lowest bidder is because it shows the proper supervision of public money. This process is why the majority of public bid projects must be advertised for at least 30 days prior. The public bid projects are typically advertised in a newspaper or on a government website.
Public Bidding Projects and Their Extra Requirements
As Jacksonville construction lawyers, we are aware that unlike private bidding projects, public bidding projects tend to have extra bidder requirements. These requirements can range from being a prequalified bidder to being invited to 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.