An Invitation to Bid is a document that must be filled in by customers to inform their prospective suppliers or contractors about the appearance of a new order, provide its detailed description, specify its terms and conditions, and invite these organizations to apply for participation.
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Usually, a customer gathers pre-qualification questionnaires, completed by companies that wish to receive a work order. Based on the information contained in these questionnaires, a customer evaluates these organizations for their suitability and makes a list of prospective suppliers or contractors. When a customer has a new order, they send an Invitation to Bid Letter to organizations, contained in this list. After analyzing all the offers received, a customer chooses the most profitable and suitable one.
A printable Invitation to Bid template can be downloaded through the link below.
An invitation to bid is used when the specification, prepared for a particular project, contains standard products or services that may differ only in price. After receiving the invitation, potential suppliers submit their proposals in sealed envelopes. The customer publicly opens envelopes at the specified time, evaluates these offers, and recognizes the organization that offered the lowest price as the winner. Usually, any additional negotiations are not required. When the contractor is selected this way, there is a risk of low-quality performance of work. Thus, when completing an Invitation to Bid, the customer should carefully develop a detailed specification and define the minimum qualification requirements for participants.
A typical Invitation to Bid Form contains the following sections:
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