COMPETITIVE BIDDING AND CONTRACTING
PROCEDURES
PUBLIC WORKS – works constructed for
governmental agencies, constructed by public
expense and under public control.
PRIVATE WORKS – works constructed by
private parties, partnerships or corporations.
 Public works must usually be let only
after advertising, and to the “lowest
responsible bidder.”
 Where the law provides that the
contract shall be given “to the lowest
responsible bidder giving adequate
security.”
QUESTION: Why are the bidding procedures for
the construction of public works more rigidly
fixed than are those for the construction on
private works?
 To eliminate collusion and fraud, and
these requirements must be observed
in order that a legal contract may be
established.
NEGOTIATION CONSTRUCTION CONTRACTS
 The negotiations which are necessary to
prior to the awarding of a construction
contract will vary in type and formality
with the nature of the work to be done.
QUESTION: Why is more than one bid usually
solicited for any given construction contract?
 To secure for the public or the owner
the advantages of the competition and
the right to select a proposal which is
advantageous.
COMPETITIVE LETTINGS – are usually the most
desirable methods of letting construction
contracts.
RESTRICTED LETTINGS – proposals may be
restricted to those persons or companies known
to be the most reliable or capable.
QUESTION: What is the attitude of most ethical
engineers and architects toward requesting
bids from several sources to check the bid of a
party to whom it has already been decided to
award the contract?
 They should know neither friends nor
favourites among the bidders in the
letting of any work to be done under
their specifications and should strive to
award the contract to the lowest and
best bidder in all cases.
QUESTION: In contracting for construction
work on fixed bids basis, why should the owner
take the responsibility for and pay the cost of
obtaining borings and other exploration of the
site?
 The locality belongs to the owner, and
the contractor should not be asked to
gamble on its conditions. The
contractor should bid on guaranteed
local conditions with an increase or
reduction of price for variations.
QUESTION: In what respects should the
contractor be given a maximum of freedom to
pursue the work as he desires?
 The contractor, when bound to a time
limit, should be given the utmost
freedom as to the order and manner of
doing the work.
QUESTION: In how much detail should the
plans and specifications set forth the work to
be performed on a construction project?
 In so far as is economically feasible, the
plans and specifications should give full
details as to required work, including all
dimensions, quantities, classes of
 materials, and everything else that is
reasonably required in preparing a cost
estimate.

QUESTION: List the provisions which should be

included in a contract for a construction project
for the protection of the owner.

 The right to void the contract.

 The right to take over the work in whole
or in part and finish it by other means.

QUESTION: List the provisions which should be

included in a contract for a construction project
for the protection of the contractor.

 The contractor should be protected

from damages due to delays on the part
of the owner or his agents.
 The contractor should have the right, at
his option, to stop the work and
terminate the contract by some causes.
 The contractor should not be liable for
losses caused by an act of God or a
public enemy.

CONTRACTS FOR PUBLIC WORKS

RESTRICTIONS

1. Engineers should not be permitted to

bid on work for which they have
prepared plans and specifications.
2. No bids should be requested until funds
to pay for the work have been provided.
3. Bids should be opened and read in
public.
4. No bids should be accepted after the
time specified in the advertisement of
bids.
5. Illegibility and ambiguity should
invalidate any bid.