Competitive bidding is a process where multiple parties submit proposals to win a contract or project. This method is commonly used in industries like construction, procurement, and government contracts. The goal is to encourage fair pricing and quality by allowing different bidders to compete against each other. In a competitive bidding scenario, each bidder presents their offer, which includes pricing and terms. The contractor or organization then evaluates these bids based on criteria such as cost, experience, and project timeline. The winning bid is typically the one that offers the best value while meeting all requirements.