Free Essay

Bidding

In: Business and Management

Submitted By frozenflares123
Words 1112
Pages 5
Introduction and How to make a Bid
(Group 9)

Submitted By:
Clet, Mark Anthony C.
Guevarra, Luis Carlo C.
Ramirez, Noel S.
BSME V-1

Submitted To:
Engr. Armingol B. Morales
(Instructor)

BIDDING is an offer (often competitive) of setting a price one is willing to pay for something or a demand that something be done. A price offer is called a bid. The term may be used in context of auctions, stock exchange, card games, or real estate. Bidding is used by various economic niche for determining the demand and hence the value of the article or property, in today's world of advance technology, Internet is one of the most favorite platforms for providing bidding facilities, it is the most natural way of determining the price of a commodity in a free market economy.
Biddings are arranged by first disclosing the time and space location of the place where the bid is to be performed, so that more interested bidders may participate and the most "true" price of the commodity may come out, in terms of bidding on Internet the time frame for posting the bids may be a topic of interest.
For some auction houses, bidding is meant to be fun and enjoyable, but remember that each bid you place enters you into a binding contract. All bids are active until the auction ends.
Many similar terms that may use or may not use the similar concept have been evolved in the recent past in connection to bidding, such as reverse auction, social bidding, or many other game class ideas that promote them self as bidding. Bidding is also sometimes used as ethical gambling in which the prize money is not determined solely by luck but also by the total demand that the prize has attracted towards itself.

HOW TO MAKE A BID

Having the skills to do a job doesn't always mean you have the knowledge to be able to effectively bid it. There are several variables that need consideration when making a bid for any kind of project, whether it is for a construction job or consulting work for a company's marketing plan. One must consider equipment and supplies required, time spent working on the job, and any expenses that will be incurred in order to put together a realistic bid.

STEPS ON MAKING A BID

1. Ask your client for references. You need to know up front if your client is a good credit risk and whether you ought to request payment up front. If you discover that the client has a record of not paying his bills, do not bid the job. It will only be a waste of time.

2. Break down the job into what types of work it will require. Examine the working conditions or space. Analyze the difficulty of the work. Some jobs are not worth the time taken to write a bid if the work is so difficult or time-consuming it won't allow you to make a profit. Additionally, try to determine your chances of being the winning bidder. If you know that another contractor or company that consistently underbids just to win a job is bidding, strongly consider whether or not you want to spend the time writing up the bid.

3. Ask the potential client about all aspects of the job. Find out the details about expectations and what the final product should reflect. If applicable, review the current condition of anything you'll be working on. For instance, if you're repairing a porch, check its condition before writing up the bid. If you're consulting with a company about its marketing campaign, access its current branding and positioning statement.

4. Calculate the costs for any supplies or expenses you expect to incur. Supplies include any materials needed to do the job. Expenses are any travel, lodging or meal costs, as well as subcontractor or equipment rental fees.

5. Review all information you have noted throughout the previous steps. If you notice that you have missed anything, add it now. Check to make sure you are making a profit from the job and that all expenses, including any overhead costs, are calculated into the bid.

6. Write your bid proposal. All cost information should be in line-item form so that your client knows exactly what the bid includes. Specify any limitations, exclusions or stipulations for the bid. Your contact information, company name and payment requirements should appear prominently on the bid proposal.

7. Print your bid proposal on company stationary with your logo or plain, white paper. Your bid should look professional and be accurate. Proofread it several times before printing the final copies. Present your potential client with two copies and keep one for your file.

SUMMARY DESCRIPTION OF A BIDDING DOCUMENT

PART I - BIDDING PROCEDURES
Section 1 - Instructions to Bidders (ITB)
This section specifies the procedures to be followed by Bidders in the preparation and submission of their Bids. Information is also provided on the submission, opening, and evaluation of bids and on the award of contract.

Section 2 - Bid Data Sheet (BDS)
This section consists of provisions that are specific to each procurement and supplement the information or requirements included in Section 1 - Instructions to Bidders.

Section 3 - Evaluation and Qualification Criteria (EQC)
This Section contains the criteria to determine the lowest evaluated bid and the qualifications of the Bidder to perform the contract.

Section 4 - Bidding Forms (BDF)
This Section contains the forms which are to be completed by the Bidder and submitted as part of his Bid.

PART II - REQUIREMENTS

Section 5 - Employer’s Requirements (ERQ)
This Section contains the Specification, the Drawings, and supplementary information that describe the Works to be procured.

PART III - CONDITIONS OF CONTRACT AND CONTRACT FORMS
Section 6 - General Conditions of Contract (GCC)
The general conditions shall be the Conditions of Contract for Construction, First Edition 1999, prepared by the Fédération Internationale des Ingénieurs-Conseil. These Conditions are subject to the variations and additions set out in Section 8 (Particular Conditions of Contract).

Section 7 - Particular Conditions of Contract (PCC)
This Section contains provisions which are specific to each contract and which modify or supplement the GCC. Whenever there is a conflict, the provisions herein shall prevail over those in the GCC.

Section 8 - Contract Forms (COF)
This Section contains forms, which, once completed, will form part of the Contract. The forms for Performance Security and Advance Payment Security, when required, shall only be completed by the successful Bidder after contract award.

Section 9 - Appendix to Tender
This Section contains the specific data which supplements the General Conditions of Contract. The Appendix to Tender forms part of the Agreement.

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