Federal Procurements Bid Development

Prior to hiring a contractor, a bid package and process must be developed. Minimum package requirements include:

• Bid Forms
• Advertisement for Bid Form (or solicit selected contractors, using pre-qualifying criteria)
• Instructions to Bidders Form, including the method for award of contract (e.g., to the lowest bid or the lowest base bid in combination with alternates)
• Contract Form
• Bid Bond Form (5% bid security)
• Contractor's Application for Payment
• Performance and Payment Bond form (100%)
• Equal Employment Opportunity (construction contracts exceeding $10,000)
• Construction Contract General Conditions and Supplemental Conditions
• Construction Contract Completion Time and Closeout Documents necessary for Substantial Completion
• Bonding and Insurance Requirements
• Current Wage Determination rates according to the Davis-Bacon Act.

Awarding a construction contract using the bid process is based mainly on cost. Cost may not be the only factor in awarding a construction or renovation contract. Quality of work, references, the ability to complete on time and within budget, and bonding are other factors that could play a part in awarding a construction contract.

A construction contract doesn’t have to be given to the lowest bidder. It must, however, be awarded to the lowest and best bidder. If the lowest bidder is not awarded the contract, it’s very important that a detailed explanation is provided to the funding agency and that documentation be filed with the agency's council for any legal challenges that may be brought against the agency. The architect and/or project manager plays a key role in documenting the reasons for awarding a contract to the lowest best bidder rather than the lowest bidder.

For more information concerning the development of a bid, contact the lawyers at Malyszek & Malyszek for a free initial consultation.