How does Competitive Bidding determine the successful contractor?

In the context of competitive bidding, the process is designed to ensure fairness and transparency in the selection of contractors for construction projects. The award of the contract is typically made to the lowest responsible bidder, which means that the contractor offering the lowest price while also demonstrating the ability to perform successfully and meet the project's requirements is selected.

This method promotes healthy competition, allowing multiple contractors to submit their bids, thus facilitating cost-effective project financing for the owner. It encourages contractors to provide their best pricing in order to win the contract. Responsibility reflects a contractor's capability, including experience, financial stability, past performance, and resources available, thus ensuring that not only is the price competitive, but the contractor can also deliver the project on time and to the required standards.

The other options, while they present different approaches to contractor selection, do not align with the principles of competitive bidding. Selecting the highest score or choosing based on relationships doesn't ensure that the project is awarded based on merit and the best value for money. Limiting bidding to local contractors may also restrict competition and could lead to higher costs or less qualified bidders being selected. The essence of competitive bidding is to promote an open and fair process, with price and responsibility as the key determinants.