Advertising and Letting Contract

Purpose of Advertisement

The purpose of the advertisement is to bring the proposed letting the notice of manufacturers,
contractors or others who may be interested in such a work in order that suitable competition may be
secured.

The medium of advertising should be selected with due regard to the persons whom it is
desired to reach, although the manner and extent of advertising will always be controlled by legal
requirements in the case of public contract. In local competition the local paper having the widest
circulation should be selected among the particular class of contractors. In works of any magnitude,
especially when proposed for small cities, advertisements should be inserted in the engineering and
contract in papers of the country, having wide circulation among the contractors whom it is desirable
to reach.

Engineers in charge of large works, either public or private, usually send copies of the
advertisement directly to all responsible and desirable contractors in order that the letting may be
brought directly and quickly to their attention.

Nature of Advertisement

The advertisement should be clearly state what is to be done. It should explain where, when,
by whom and for what proposals are to be received. The advertisement is intended to call the
attention of interested parties to the fact that the certain work is to be let under contract, and should
include such information concerning the extent and character of the work to be done as will allow
them to judge whether they wish to examine further. The advertisement should be clear and concise
in its statements.

The advertisement should be published not only in the usual way, but should be printed on
slips and attached to the specifications or be printed on the specifications, so that all who secure
them will also secure a copy of the advertisement, as it should form a part of the completed papers.
Bidders on work have certain moral and legal rights which are to an extent established by the
advertisement.

The advertisement should not be published until the work has been duly authorized, the
preliminary investigations made, the design, contract, and the performance on the part of the owner
or public assured.

Time Allowed

Ample time should be allowed, from the time of advertising to the time at which proposals are
to be received for the bidders to make necessary investigation on which to base an intelligent
proposal. The bidders must have sufficient time to examine the necessary data and to secure
information concerning prices of material and labor and to make such preliminary studies of the
methods and plans needed in the construction, capital and financial arrangement as conditions may
require.
Form of Proposal

The proposal may either be printed form or it may be left for the bidder to make out in the form
of a written communication. When the work is simple and the bid is a “lump sum” for the entire work,
a special form is not essential. When there are a number of items for which proposals are desired, a
form for the proposal becomes essential in order to assure a fair comparison. Such a form properly
prepared insures uniformity in the bids submitted so that they may be directly compared on the basis
of the price.

Instructions to Bidders

The “instructions to bidders” supplement the advertisement and should contain the directions
for the preparation of proposals and prescribe such formalities as may be required in their
presentation. The more complete the plans and the more definite the specifications, the more rigid
can the instructions to bidders be made with security to all parties.

Letting the Work

In the letting of work, various considerations may influence those who have the matter in
charge. The lowest and best bid should always be selected. In many cases the right decision is
obvious, but the question may arise as to what constitutes the best bid. Differences in opinion may
arise from difference experience, concerning men, methods and the weight to be given to various
factors. Familiarity with a particular contractor may impress the individual favourably or unfavourably
as the case may be, and fortunate or unfortunate experience with a certain material or machine may
create an unfair judgment. Personal prejudice is an important factor in judgment which the engineer
should endeavour to eliminate from his own decisions.

Factors that affecting the Letting of Contract:

A. Price
B. Experience and Responsibility
C. Politics
D. Fashion (Materials)
E. Appearance
F. Reputation
G. Delivery