The Bidding Process

• When a project needs to be completed, the entity planning the project submits a request for proposals. Guidelines and particulars of the bid proposal are often published in newspapers, online or supplied to potential contractors. The bids are often opened in public and reviewed at a bid opening, which ensures that no favoritism or unethical behavior takes place. The bid is then awarded to the contractor with the best overall offer.
  
  

Open Bidding

• The open-bidding process is normally open to the public, allowing all those interested to make a bid offer. Open, or unsealed, bids are available for the other bidders to see, while some procedures are done in a real-time elimination process, with bidders adjusting their bids during the hearing. The open-bidding process usually occurs when a government entity is seeking bids for a project.
  
  

Closed Bidding

• Closed bidding is a type of bidding that is not open to the public. The organization accepting bids invites those it feels are best suited to accomplish the project. Also, during a closed bidding process, those attending are not allowed to argue in favor of the bid placed. The submitted bid cannot be altered and determines who is awarded the contract.
  
  

Other

• In some cases, a select contractor may be offered the project, even if the bidding process is not fully completed. In special cases, such as during an emergency or when no acceptable bids are placed, the entity accepting the bids may choose one of the bidding firms, or a different company that best meets its needs. Normally, this only happens in extreme situations, otherwise it may be an illegal action if it's the government seeking bids.