Open Bid Law and Legal Definition
An open bid is a bid that can be changed or modified after submission, in order to meet competing bids. It is also known as unsealed bid. An open bid is available for all other bidders to see and possibly act upon. Open bidding may be done through a traditional live auction, where an auctioneer calls out prices as bidders indicate their willingness to pay.
Open bids may be awarded for construction projects, where the lowest bidder often gets the contract. An open bid sought for a project or for the award of a contract begins with a bid request from the sponsoring agency. The sponsor is usually a government or private company. The published request includes specifications that can be reviewed by different bidders. Interested parties can submit a bid. After that, the bidder can see if their bid is competitive with others by watching the bid board, which may be a physical board or an online presentation.
