Estimating Practice Exam

The process of securing bids from contractors can be described as what type of activity?

1. Negotiated process

2. Competitive bidding

3. Informal meeting

4. Advisory consultation

The correct answer is: Competitive bidding

The process of securing bids from contractors is best described as competitive bidding because it involves multiple contractors submitting proposals or bids for a specific project. This method allows project owners to compare different offers based on price, schedule, and scope of work, fostering a competitive environment that can lead to better pricing and quality. In a competitive bidding scenario, transparency and fairness are essential, as all interested contractors have the opportunity to compete for the work under the same conditions. This method not only helps ensure that the project owner receives a fair market price but also allows for the evaluation of various contractors' qualifications and capabilities. Other options provided, such as negotiated processes, informal meetings, and advisory consultations, do not reflect the nature of obtaining multiple bids through a formalized, competitive approach. Instead, those options suggest different methods of contractor engagement that do not inherently include the competitive aspect of bid submissions that is central to the concept of competitive bidding.