Bid Instructions

Bid instructions refer to the specific guidelines or directives provided by a buyer, trader, or investor when submitting a bid for a security, asset, or contract. These instructions detail the terms under which the buyer is willing to make the purchase, including the price, quantity, and any other conditions that must be met. In auctions or competitive bidding processes, bid instructions are crucial as they ensure clarity and precision, reducing the likelihood of misunderstandings or errors.

Example

A company might issue bid instructions to potential contractors, specifying the scope of work, deadline for bid submissions, and criteria for selection in a construction project.