Sealed vs. Open Construction Bidding

March 28, 2012 — 1,227 views  

In the general world of construction, many different projects can be undertaken by a contractor or supervisor. Landscaping experts craft lawns and gardens, tile masons line bathrooms with stone and carpenters provide the framework for expansive houses. The only thing that all of these jobs have in common is a construction bid, otherwise known as the formal offer from a contractor to provide a given service in exchange for a fee. Within this language are two subcategories - sealed construction bidding and open construction bidding.

Sealed construction bidding is basically a private competition where the lowest bidder is entitled to the rights of a project. However, in this type of bidding the losing contractors may always compete for the next project. These construction projects are often used as a "seed" to provide a base competition for deciding on offers for master contracts. Basically, this means that the lowest bidder may not always secure a long-term contract.

The key difference in open construction bidding is that it provides equal opportunity to all competing building agencies. These bids are required by law to be publicly advertised, and any contractor may submit a bid so long as he has the appropriate finances and equipment. The only drawback is that the lack of regulations may result in a contractor being hired who is not up to par, resulting in a waste of time and money.