In a Lump Sum fixed price under Design-Bid-Build, what do bidders compete against each other on?

Bidders in a Lump Sum fixed price contract under the Design-Bid-Build methodology primarily compete against each other based on price. In this procurement method, the project owner first completes the design phase and then invites bidders to submit their prices for the construction work based on the finalized design. Given that the scope and specifications have already been determined, bidders focus on providing the most competitive fixed price to win the contract.

The competition generally centers around who can perform the project for the least amount of money while still meeting the design specifications. While timelines, quality of work, and experience might play a role in overall considerations during the selection process, the key factor influencing the outcome in a Lump Sum bid scenario is the price offered. Other options, such as project timelines, quality of work, and experience, may certainly matter but are secondary in this specific competitive context. They are typically evaluated during the bid process, especially when bids are closely priced, but the decisive element remains the lowest price proposed within the given scope.