Hello,
I am not clear yet in terms of following question.
Could anyone tell me major differences between “Competitive Bid” vs “Negotiated Proposals”?
Thank you,
Hi @humeda !
Great question! Competitive bids are typically used in public projects but can also be used in commercial projects as well. This is a very traditional approach where an owner works with an architect to put together an RFP (request for proposal) where contractors then submit their bids and one is chosen by the owner. In public projects, it’s typical for the most affordable contractor to be selected.
In negotiated bids, a contractor is selected by the owner and sometimes architect early on in the process and their fee is negotiated with the owner. This is typically done in most residential projects and many commercial projects.
You can also find a lot of articles describing the difference between these two online. Thanks!
-Rebecca