A bid is a contractor's formal price proposal to complete a construction project or provide services. When municipalities need work done, they typically issue tender documents describing requirements and invite contractors to submit bids. Each bid includes the proposed price, timeline, and evidence of qualifications. Public procurement rules usually require municipalities to follow fair, transparent bidding processes and often (but not always) to select the lowest qualified bidder. Competitive bidding helps ensure taxpayers get value for money, though evaluation may also consider factors beyond price such as quality, experience, and project approach.