Estimating Practice Exam

In a closed bid system, how many contractors are typically invited to bid?

1. No more than ten contractors

2. Fifteen contractors

3. Twenty contractors

4. Unlimited contractors

The correct answer is: No more than ten contractors

In a closed bid system, the process is designed to maintain confidentiality and control over the bidding process. Typically, no more than ten contractors are invited to submit their bids. This limitation ensures that the selection remains manageable and allows the client or project owner to evaluate the bids effectively without becoming overwhelmed by too many proposals. By inviting a smaller number of qualified contractors, the client can better assess the qualifications, experience, and proposed costs of each contractor. A manageable size also fosters competition while allowing for a more thorough review of each submission, ultimately helping to select the most suitable contractor for the project. Inviting an unlimited number of contractors would dilute the focus and make the evaluation process significantly more complex, which is contrary to the purpose of a closed bid system.