Public bids
Public work includes schools, city buildings, state universities and federal projects. A public owner must follow procurement rules. The rules are set by law and differ by state and by agency.
- The job is advertised and open to qualified bidders.
- Bids are due at a fixed time. A late bid is rejected.
- Bids are often opened in public and the results are public records.
- The award usually goes to the lowest responsive and responsible bidder.
- Bid bonds and payment and performance bonds are common.
- Prevailing wage rules and certified payroll often apply.
- The bid form must be filled out exactly.
Private bids
A private owner can do what it wants. It can invite a short list of GCs. It can negotiate with one. It can pick a higher bid because it trusts the contractor. Results are usually not published.
What changes for a subcontractor
- On public work, read the wage determination before you price labor.
- Check whether the materials are tax exempt and how the exemption works.
- Check whether the GC must list its subcontractors in the bid.
- Check for participation goals for small or disadvantaged businesses.
- On private work, the relationship with the GC counts for more.
- On private work, expect more negotiation after the bid.
Qualified bids
A private GC will usually read your qualifications and talk them through. On a public job, the GC's own bid must be clean. A sub bid full of conditions is harder for the GC to use.
Where to find the rules
The rules for each job are in the front of the Project Manual. Read the invitation to bid, the instructions to bidders and the general and supplementary conditions. Bond, wage and tax rules vary by state and by owner. Check the bid documents and your state's rules. Ask your surety, your accountant or an attorney when you are not sure.
Bidding and estimating · Updated 11 Nov 2026