INVITATION TO BID 1 PROJECT IDENTIFICATION bb - Bid4Michigan 2025

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Bid documents include the plans, specifications and estimates (PSE) developed to describe all of the elements of a construction project and become the contract between the local government and the selected contractor.
An invitation to bid (ITB) is an official document issued by a project owner that targets contractors to solicit bids for a construction project.
Invitations to bid are utilized when there is little to no guesswork as far as how the project will be completed. Essentially, every bidder can produce the same product, so the only thing that separates them is the cost of their services.
Because the focus of the invitation to bid is on the bidders price for project completion, there is less emphasis on the bidder introducing its own ideas. This separates the ITB from a request for proposal (RFP). With an ITB, there is competitive sealed bidding.
An invitation to bid is a way for an owner to get as many bids from contractors as possible for a construction project desired. Steps of an invitation to bid include; bid appeal, bid submission, bid selection, subcontracting, and contract formation. A request for a proposal is more complex than an invitation to bid.
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Whereas an IFB will evaluate proposals largely based on price, RFPs will consider price as well as details of the bidding organizations operational plan, staff experience and education, timeline estimates and more. The review process for an RFP is typically longer than those of IFBs.