Utah Contractor Practice Exam

Which option is commonly used for a competitive bidding process in construction?

1. Base bid

2. Open bid

3. Allied bidding

4. Selected bidding

The correct answer is: Open bid

The option that is commonly used for a competitive bidding process in construction is open bid. In an open bidding process, all interested contractors have the opportunity to submit their proposals. This promotes transparency and competitiveness, as it allows multiple bids to be reviewed, ensuring that the owner can select the best option based on various criteria, including cost, experience, and the quality of the proposal. This approach is beneficial as it encourages participation from a wide range of bidders, leading to potentially more favorable pricing and terms. Open bidding is typically used for public projects where regulations require that all interested parties be allowed to participate, thereby promoting fair competition. The other options, while related to different forms of bidding processes, do not represent the same level of accessibility and competitiveness that open bidding does. Base bid refers specifically to the initial price that a contractor sets without any extras; selected bidding involves a narrower pool of contractors who are invited to submit bids, thus reducing the competitive landscape; and allied bidding is not a standard term typically associated with competitive bidding practices in construction.