In Procurement (Bidding/Negotiating/Purchasing), what results in award of a contract?

• A. Acceptance of the contractor's bid or negotiated sum and other conditions
• B. Issuance of permit
• C. Final inspection
• D. Submittal of shop drawings

Answer: (A)

Awarding a contract happens when the owner accepts the contractor’s bid or negotiated price and the accompanying terms, creating a formal, binding agreement. This acceptance signals mutual commitment and typically results in a signed contract or purchase order that sets the price, scope, schedule, bonds, insurance, and other conditions. Until this acceptance occurs, there is no contract to perform work under, so no award has taken place.

The other activities—issuance of a permit, final inspection, and submittal of shop drawings—occur after the contract is in place. Permits are issued by authorities as part of regulatory compliance, final inspections occur after work is completed to verify it meets requirements, and shop drawings are submitted during construction for review and coordination once the contract governs the project.