What is the purpose of an alternate bid?

An alternate bid serves a specific function within the procurement process, particularly when it comes to public finance and project bidding. The primary purpose of an alternate bid is to request prices for specific changes in the work or schedule, which allows the contracting authority to understand the financial implications of various options that may deviate from the initial project scope.

For example, a project may require alternate bids to assess costs related to different materials, design modifications, or alternative construction methods. By presenting these alternate bids, the authority gains insights into how changes might impact the overall budget, project timeline, and feasibility, enabling more informed decision-making.

This process encourages competition and innovation among contractors as they propose alternative solutions that may be more efficient or cost-effective. The information gathered from alternate bids can be pivotal during the evaluation process, allowing the decision-makers to consider not just the lowest price but also the best value based on the changes proposed.