What is the term for the formal offering to perform work at a specified price?

The term "a bid" refers specifically to the formal offering made by a contractor or vendor to undertake a specified scope of work for a designated price. This term is primarily used in the context of competitive procurement processes, where multiple parties submit their bids to be considered for a construction or service contract.

A bid usually contains detailed information about how the work will be executed, the timeline for completion, and the total costs associated with the project. It is a legal document that often includes terms and conditions, ensuring that both parties understand the obligations and expectations. The process of submitting a bid is critical in commercial construction, as it allows clients to compare proposed prices and terms from different contractors to select the most suitable offer for their project.

While "an estimate," "a proposal," and "a quotation" are related concepts, they typically differ in terms of formality, detail, and purpose. An estimate may provide a rough calculation of costs without the formal commitment of a bid. A proposal often includes a broader outline of services, methodologies, and sometimes additional information like project management plans. A quotation usually refers to an offer of specific pricing for a defined scope of work, but it may not carry the same contractual weight as a bid in a competitive scenario.