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Is the Bidding Process the Same for Private and Government Contracts?


No. Construction contracts may fall into one of two basic categories:

(1) public contracts, where the party requesting bids is a government agency; and

(2) private contracts, where none of the parties to the bidding process is a government agency.

The bidding process in connection with public contracts is generally very formal, with a raft of existing rules and regulations that must be strictly followed in order to emerge with the winning bid.

In connection with private contracts, the bidding process is less formal and not generally constrained by detailed government-imposed rules and regulations. In the private sector, the owner or prime contractor requesting bids has wide latitude in setting its own rules for soliciting bids, and in selecting among the various bids submitted. However, this latitude in the private sector is not completely unbounded. In connection with major projects, it is wise to have a construction lawyer review bid solicitation documents for compliance with state and local laws and customs.


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