COMPETITIVE BIDDING Meaning and
Definition
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Competitive bidding refers to a process in which multiple entities or individuals participate in an open and transparent competition to secure a contract or win a sale. It is primarily used in business transactions, government procurement, and various other industries where multiple parties are interested in providing a certain product or service.
During competitive bidding, interested parties submit their proposals or bids containing details regarding the cost, terms, and conditions of their offerings. The bids are assessed based on various factors such as price, quality, delivery timeframe, and expertise. The entity or individual that presents the most favorable bid, meeting the requirements stipulated by the requesting party, is typically awarded the contract or sale.
The primary objective of competitive bidding is to promote fairness, maximize efficiency, and achieve the best possible value for the requesting party. By encouraging competition, it helps prevent monopolies and encourages innovation and continual improvement. Competitive bidding also allows potential suppliers or service providers to showcase their capabilities and compete on an equal footing, ensuring that the selection is based on merit rather than favoritism.
Many industries and sectors utilize competitive bidding as a standard practice, including construction, manufacturing, consulting, and government procurement. Governments often implement competitive bidding procedures to ensure transparency and ethical practices while maximizing public funds.
In summary, competitive bidding is a fair and open process where multiple entities participate, bidding for contracts or sales by presenting proposals that meet specified requirements. It aims to enhance competition, efficiency, and value for the requesting party while promoting transparency, fairness, and equal opportunities for all bidders.
Common Misspellings for COMPETITIVE BIDDING
- xompetitive bidding
- vompetitive bidding
- fompetitive bidding
- dompetitive bidding
- cimpetitive bidding
- ckmpetitive bidding
- clmpetitive bidding
- cpmpetitive bidding
- c0mpetitive bidding
- c9mpetitive bidding
- conpetitive bidding
- cokpetitive bidding
- cojpetitive bidding
- comoetitive bidding
- comletitive bidding
- com-etitive bidding
- com0etitive bidding
- compwtitive bidding
- compstitive bidding
- compdtitive bidding
Etymology of COMPETITIVE BIDDING
The word "competitive" comes from the Latin word "competere", which means "to strive together". The term "bidding" derives from the Old English word "bidden", meaning "to offer or command".
When combined, "competitive bidding" refers to a process where multiple individuals or organizations strive together by offering bids or proposals to win a contract, project, or purchase.
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