What are the common types of bids used in construction projects?

The most relevant types of bids commonly used in construction projects are low bids and negotiated bids.

Low bids are often utilized in competitive bidding processes, where contractors submit their best possible price for completing the project. The contract is typically awarded to the bidder with the lowest price that meets all specified requirements. This approach emphasizes cost-effectiveness and encourages contractors to minimize expenses to secure the contract.

Negotiated bids, on the other hand, allow for a direct dialogue between the contractor and the client. This type of bidding may be employed when the project scope is complex, requiring additional discussion to determine pricing based on value, expertise, or specific project needs. Negotiated bids can enhance collaboration and ensure that the project specifications and expectations are fully understood by all parties involved.

Thus, these two types of bids reflect common practices in the construction industry, aligning with various project requirements and procurement strategies.