Bidding Introduction report:

I.Introduction :
Bidding is a competitive process used in various industries, particularly in
procurement, contracting, and auctioning, where individuals or companies
submit proposals or offers to undertake a specific task or purchase an asset.
The bid process involves presenting a price or terms under which the bidder
is willing to fulfill the requirements set by the party inviting the bids, often
called the buyer or owner.

Definition of terms:
Auctioning: Is a process where goods or services are sold to the highest
bidder.
1. English Auction-the most common type of auction. Typically made openly
and the bidder must be higher than the previous one.
2. Dutch Auction- The auctioneer starts with a high price which lowered
incrementally until the price is accepted.
3. Sealed-bid Auction- Participant submit their bids in sealed envelopes, and
all bids are opened simultaneously . The highest bid wins, but bidders do not
know the bids of others until the auction ends.
4. Reverse auction- Typically used in procurement, Sellers compete to offer
goods or services at the lowest price, and the buyer selects the lowest bid.

Contracting:refers to the process where businesses or individuals submit

proposal to undertake a specific project or provide services as outlined by a
client or buyer, often through a competitive bidding process.

Procurement: refers to the process by which organization acquire

goods,services or works from external suppliers through a competitive bidding
process.

Asset: refers to any item , property, or resources that is put up for sale or
lease and is subject to competitive bidding.

Bidder: An individual, company, or organization that submit proposal or offer

in response to a solicitation for bids.

Factors need to consider in a bidding are;

 Price
 Quality of product
 Experience and compliance with the project requirements
II.Understanding the Bid process

A.
Definition of Bid
- Is a formal offer or proposal made by an individual, company or organization
in response to a request for proposals(RFP), an invitation to bid(ITB), or an
auction.
Importance of bidding in Mechanical Engineering Project
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B.
Types of Bid
1. Open Bidding- Is a procurement process in which a project or contract is
advertised publicly, and any qualified bidder is allowed to submit a proposal.
This commonly used by government agencies and large organizations to
procure goods and services, ensuring that the procurement process is fair,
competitive , and results in the best possible outcome.
2. Closed Bidding- also know as sealed bidding, is a procurement process in
which only selected or pre-qualified bidders are invited to submit bids.It is
often used for projects that require a high level of expertise, security, or
confidentiality, such as government contracts , defense project, and
specialized technical services. This ensure that the bidders are capable and
reliable, reducing the risk of project failure.
3. Competitive bidding- a procurement process in which multiple individuals,
companies,or organizations submit offers or proposal to compete for a
contract, project or asset. It is to obtain the best value for the buyer while
ensuring fairness and transparency in the selection process. It promotes
efficiency, accountability and fair competition in procurement processes.
C.
Key Stakeholders in the Bid Process
1. Client-
2. Contractors-
3. Suppliers-
D.
Legal and Regulatory Framework
1. Contract Law-
2. Government Regulations-
3. Industry Standards-