Low bid procurement in residential construction is the process of selecting a contractor for a specific job based on the lowest price bid received. It involves soliciting bids from multiple contractors and then evaluating them to determine which one can offer the best quality work at the lowest price. The selection criteria may include qualifications, references, timeframes, and other factors that must be taken into consideration when making an informed decision.
Low bid procurement is generally used when cost savings are more important than time or quality considerations. This approach is often associated with government procurement, where lowest cost is the final deciding factor.