FORMAL BID Meaning and
Definition
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A formal bid is a legally binding proposal submitted by a potential contractor or supplier to provide goods or services in response to a solicitation or tender issued by a buyer or a purchasing organization. It is a transparent and structured process used in industries such as construction, government procurement, and private sector acquisitions.
In a formal bid, the bidder typically prepares and submits a comprehensive document, known as a bid proposal, which details their pricing, qualifications, project approach, and other relevant information. The bid proposal is usually accompanied by other required documents, such as financial statements, licenses, and certifications.
The formal bid process is governed by specific rules and regulations that aim to promote fair competition and ensure impartial evaluation. These rules often dictate specific timelines for bid submission, guidelines for acceptable bid formats, and criteria for bidder qualifications.
Upon submission, the formal bid is typically reviewed by the buyer or an evaluation committee. The evaluation process often involves assessing the technical and financial capabilities of the bidder, in addition to comparing their proposed pricing and terms with those of other bidders. The buyer then selects the winning bid based on predetermined evaluation criteria, such as lowest cost or best value.
If the bid is accepted, a legally binding contract is typically established between the buyer and the winning bidder, outlining the agreed-upon terms and conditions for the provision of goods or services.
Common Misspellings for FORMAL BID
- dormal bid
- cormal bid
- vormal bid
- gormal bid
- tormal bid
- rormal bid
- firmal bid
- fkrmal bid
- flrmal bid
- fprmal bid
- f0rmal bid
- f9rmal bid
- foemal bid
- fodmal bid
- fofmal bid
- fotmal bid
- fo5mal bid
- fo4mal bid
- fornal bid
- forkal bid
Etymology of FORMAL BID
The word "formal" originates from the Old French word "formel" which means "in due or proper form". It derives from the Latin word "formalis" which means "of or belonging to form". The term "bid" comes from the Middle English word "bidden" which means "to offer, announce, or proclaim". The combination of these two terms, "formal bid", refers to a formal or official offer or proposal made in the prescribed manner or format.
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