Understanding the construction bidding process

On Behalf of | Sep 25, 2023 | Construction Contracts |

The bidding process is important to obtain construction services and to make sure that a project is completed on time and on budget with a reputable contractor. However, occasionally there are bid disputes that need to be resolved between the project planner and the contractor.

Bidding process overview

First, the project planner will determine the work requirements and create a detailed project plan. Then, they will prequalify a contractor based on their experience, cost and past performance. The contractors will receive a notice with project details and submission requirements.

The contractor will prepare a bid, which includes a cost estimate and a proposed project schedule, and then submit it to the project planner. The project planner will review all bids and choose the contractor they would like to work with. Then, the two parties will sign a contract before the work begins.

Resolving disputes

A bid dispute is a disagreement or conflict between the contractor and the project planner. It’s helpful if the two parties can work together to resolve the dispute early in the construction project.  Often, a dispute arises when there is a misunderstanding or misrepresentation of the terms and conditions in the contract.

If the parties cannot resolve the dispute on their own, they may choose to participate in mediation or arbitration. If they can settle the issue through negotiation, they may not need to pursue further legal action.

However, they do have the option to have the court decide the outcome. There is help available.

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