ABSTRACT
Two general approaches to contractor selection are available: bidding and negotiation. Bidding encourages all interested firms to submit as low a price as possible, but seldom is the price actually paid as low as the winning bid. Typically, change orders occur and these lead to price increases, delays, and other problems. Accordingly, if it is decided to employ bidding, it is suggested strongly that the award not necessarily go to the low bidder. Instead, all firms should be prequalified, and a prebid conference should be held. Contractors also should be required to include in their bids appropriate price schedules to cover contingencies and extras.
