Invitation to bid
An invitation to bid is the notice sent to selected contractors asking them to price a defined scope, stating what is being bid, on what terms, and by when.
Also written as ITB, invitation for bid, IFB.
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Reviewed by Eric Collin · President and Founder of Firmo Construction, 20+ years in preconstruction and bid evaluation
A complete invitation carries the project identity, the bid package or trade scope being solicited, where the documents can be obtained, the site visit and question deadlines, the bid due date and delivery method, and any bonding or insurance requirements.
What it includes shapes what comes back. An invitation that names the scope precisely, points to the specification sections that govern it, and states the boundary with adjacent trades will produce bids that are already close to comparable. A vague one produces a field of proposals that each define the work differently, and the cost of that vagueness is paid later during leveling.
The invitation list itself matters as much as its content. Inviting bidders who have not been through prequalification risks a low number from a contractor that cannot deliver, and inviting too few risks a field with no competitive tension at all.
Terminology varies by sector: public agencies often use invitation for bid for sealed competitive bidding and request for proposal where qualifications and approach are also evaluated. The distinction is whether price alone decides the award.
- Bid package
A bid package is the bundle of scope issued to subcontractors as a single unit for pricing, usually corresponding to one trade.
- Subcontractor prequalification
Subcontractor prequalification is the process of vetting a subcontractor's capacity, financial standing, and safety record before inviting it to bid.
- Bid form
The bid form is the document a bidder must complete and sign to submit its price, prescribed by the owner so that every bid arrives in the same structure.
- Bid shopping
Bid shopping is disclosing one subcontractor's price to its competitors after bids are in, to pressure them into undercutting it.
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