Construction Bidding Process Vocabulary

Vocabulary practice flashcards covering terminology, document requirements, and procedures in the construction bidding process.

Bid

A signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor, or consultant in response to Bidding Documents, which gives the owner an idea of project costs.

Open Bid

A bidding method used for public projects where all contractors are allowed to submit a bid due to public advertising.

Closed Bid

A bidding method used for private projects where only a selected group of contractors receives an invitation to bid.

Two Envelope System

A bidding procedure where eligibility and technical documents are in the First Envelope and financial documents are in the Second Envelope, which are then placed together in one sealed main envelope.

First Envelope (Technical Component)

The envelope containing eligibility requirements and technical specifications, comprising one original copy and two photocopies labeled Copy No. 1 and Copy No. 2.

Second Envelope (Financial Component)

The envelope containing financial proposals such as the Bid Summary, Detailed Proposal, and List of Inclusions and Exclusions, provided as one original copy and two photocopies.

Net Financial Contracting Capacity (NFCC)

An eligibility document from a Commercial or Universal Bank submitted in government technical bids, which replaces the previously allowed Cash Deposit Certificate.

Bid Security

A mandatory technical submission for government bids set at 2% of the ABC for Cash/Manager's Check/Bank Guarantee or 5% of the ABC for a Surety Bond.

Low-Bid Selection

A selection method focusing strictly on the project price, where the owner selects the company that submits the lowest bid amount.

Best-Value Selection

A selection method evaluating both price and contractor qualifications, typically utilizing a Request for Proposal (RFP).

Qualifications-Based Selection

A selection method where the owner selects a contractor based solely on qualifications, utilizing a Request for Qualifications (RFQ) to review credentials and past performance.

Pre-Procurement Conference

A conference held before advertising the Invitation to Bid to assess readiness, mandatory for goods procurement with an ABC above 2 million pesos.

Invitation to Bid

An official announcement containing procurement descriptions, eligibility check criteria, submission deadlines, ABC, source of funds, and contract duration.

PhilGEPS

The single, centralized electronic portal serving as the primary and definitive source of information on government procurement in the Philippines.

Pre-Bid Conference

A conference mandatory for projects with an ABC of 1 million pesos or more, conducted at least 12 construction days (12cd) prior to the deadline for bid submission.

Supplemental/Bid Bulletin

An official issuance by the BAC at least 7 construction days (7cd) before the bid deadline to clarify or modify provisions of the Bidding Documents.

Pass/Fail Criteria

A non-discretionary checklist system used by the BAC during public bid opening to rate each submitted document as passed or failed.

Notice of Award (NOA)

An official notification accepting a winning bid, which requires the contractor to post a performance security within ten (10) calendar days.

Notice to Proceed (NTP)

A formal document instructing the approved contractor to begin implementing project works in accordance with contract terms and specifications.

Maximum Cost of Bidding Documents Schedule

A fee table standardizing document acquisition costs based on the Approved Budget for the Contract (ABC), ranging from Php 500.00 up to Php 75,000.00.

Post-Qualification

The stage of the bidding process where the procuring entity verifies, validates, and ascertains all statements and documents submitted by the winning bidder.

E.O. No. 662

An Executive Order mandating the posting of procurement opportunities and awards on PhilGEPS, holding officials accountable for non-posting.

Request for Proposal (RFP)

A procurement document used in Best-Value Selection to obtain specific scheduling and budgeting proposals from competing contractors.

Request for Qualifications (RFQ)

A procurement document used in Qualifications-Based Selection to evaluate contractor experience, organization, safety records, and key personnel credentials.