Public Bidding
Although there is no legal requirement that public bidding documents include Instructions for Bidders ("IFB"), as a practical matter, the IFB is critical to the bidding process. By the terms of the IFB, the public agency is able to establish the "rules of the game" for the bidding process and for award of the contract. In the IFB, the public agency can consider and provide for the handling of many of the typical issues arising in competitive bidding.
While there is no prescribed form or content of the IFB, there are many common issues typically addressed in the document. These common issues allow for the development of a standard form of IFB which can be modified as necessary for application to a particular project. Many of the issues addressed in these materials, i.e., bid security, conformity with the bid requirements, and bid protests can and should be provided for in the IFB.
The public bidding documents must by definition include the project plans and specifications. Insofar as the plans and specifications provide a principal basis for measuring the contractor's performance, great care must be taken in the planning and design phase of the project to ensure that the plans and specifications are complete and accurate. Too often, performance disputes arise between the contractor and the owner which relate to the adequacy and sufficiency of the plans and specifications. By appropriate sensitivity and oversight in the planning and design phases of the project, the public agency owner can take affirmative steps to minimize or altogether prevent such disputes.
Finally, as a practical matter, the public bidding documents must be designed to provide the public agency owner with sufficient information regarding the bidder and potential contractor. As discussed below, one of the more significant determinations a public agency must make at bid time is the responsibility of the bidders. Many public agencies are authorized by law to utilize a qualification process for determining the type or scope of projects for upon which a bidder may submit an offer. Regardless, an agency must have sufficient information regarding the financial and other capabilities of the bidders in order to make this determination on a knowing and intelligent basis.