By inviting multiple contractors to bid, owners can compare prices and select a bid that offers the best value for money. The process helps in determining the current market rates for labor, materials and services, leading to more accurate budgeting, while allowing the selection of contractors based on qualifications, experience, and past performance, as contractors submit detailed proposals outlining their approach, methodologies, and materials, to help ensure quality standards are met.

A structured bidding process ensures that all contractors are given the same information and are evaluated against the same criteria, promoting fairness. The transparent nature of the process makes it easier to hold contractors accountable for their performance and adherence to the project specifications, while allowing for due diligence, and contractors performance bonds, which protect the owner in case the contractor fails to complete the project as agreed.

Different contractors may propose innovative solutions or construction methods, providing the owner with a variety of options to choose from, since contractors bring their own expertise and best practices, which can lead to more efficient and effective project execution, thus providing detailed estimates and resource allocation, aiding in better project planning and scheduling, while ensuring contractor has the necessary workforce and equipment.

The bidding documents clearly define the project scope, helping in preventing scoop creep and misunderstandings, while contract terms, establishes clear terms & conditions, like timelines, payment schedules and deliverables, protecting both the owner and the contractor, and allowing for post-project warranty & support, including documentation and training for the operation and maintenance of the completed project, facilitating smoother handover and long-term functionality.