The use of the sealed bidding process makes great sense for larger projects. It involves a company placing its written bid in a sealed envelope provided by the buyer and then sending or delivering it to the buyer before a specified deadline. The normal steps are as follows:

• The buyer establishes written specifications for the work to be done;
  
• A list of qualified bidders is determined and written invitations are then sent out with bid specifications, including a time limit for submitting bids;
  
• The bids are opened and discussed at an executive session meeting and a decision is then made by a quorum of the board;
  
• The successful bidder is notified and the unsuccessful bidders are sent thank you letters; and
  
• A contract is negotiated and signed.
  

Bid specifications must be specific enough to make certain the bids are comparable, but not so detailed that it discourages companies from submitting bids.

The sealed bidding process protects the association from conflicts of interest and leaking information to favored bidders.

Generally, not more than three sealed bids are needed for large projects.