As a contractor, bidding for a project is a regular part of your everyday business life. This is especially the case if your services cater to the business and corporate sector. An invitation to bid is the most effective way for prospective clients to get the best proposal and the lowest price on a particular project that they need. For instance, if a company is planning to have a corporate building constructed, they will probably bid it out to get the best contractor out there.
Now, most bidding processes will require participants to submit specific documental requirements in a sealed envelope. This is called a sealed bid and is opened in confidence by the contracting party once every bid has been received at the specified date. The contracting party will open and evaluate all the bids submitted to determine the winner. The evaluation will consist of checking if the contractor submitted all the requirements. It will also consist of checking the bid price of each contractor. In most cases, the evaluation of sealed bids is meticulous. And, this is why it is important to be very careful in handling the compilation and composition of a sealed bid. Here are some tips.
- Study the invitation. The invitation to bid will normally consist of the details of the project as well as the intricacies and specifications of the bidding process. It will consist of a list of documents that a contractor will have to submit. It will include a detailed scope of the project to be contracted out. And, it will consist of a number of dates signifying the deadline for the bid submissions, date for the opening of the bids, date for announcing the bid winner, and the project start date. Obviously, in order to write and compile everything you will need for the bid, you will have to meticulously read and study the invitation. If necessary, call the people handling the bid if you have any questions about the process or the project.
- Include the cover letter. This is the first page of your bid. It is basically a letter of intent, the intent to join the bid and to inform the contracting party what documents are included in the bid you sent in as well as what you are bidding for.
- Include the company profile. Most bids will require bidders to submit information about their companies. It is pretty much standard when it comes to bidding. So, make sure to insert a company profile. This will introduce your company to the contracting party.
- Include the proposed bid. This is the meat of the sealed bid. This is a one to three page document that will consist of a broken down list of specifications for the project which will detail the materials, methodologies, timetable, and whatever else is needed for the project. The price will be broken down here as well.
Finally, the sealed bid should include a copy of the contract for the
project and a comprehensive list of similar projects undertaken and
references for evidential examination. In some cases, contracting
parties may require additional documentation such as bonds, insurance
papers, company licenses and credentials, and the like. If that is the
case, make sure to include these in your sealed bid packet as well.