Why is construction bidding important in project management?

[riya]

 The construction bidding process is very important in influencing the correct contractor to be chosen and at a reasonable price. It encourages competition, it assists in coming up with open pricing, and it ensures that the most qualified bidders can be looked at. In the absence of any form of bidding model, costs of the project may balloon or the improper contractor is selected. Bidding also promotes due diligence and assists the project owners to know where they stand to save cost.