In regard to project bidding, what does "bid shopping" refer to?

Prepare for the Alabama State Home Builder Licensure Exam with flashcards and multiple-choice questions featuring hints and explanations. Ace your exam!

Bid shopping refers to the practice of seeking the lowest bid from multiple contractors after the bid has been submitted. Specifically, it involves a contractor sharing the bids received from other subcontractors with different contractors in an attempt to drive down prices. In this context, the behavior raises ethical concerns and may result in subcontractors being pressured to lower their bids significantly to remain competitive. Such practices can undermine trust within the bidding process and negatively impact the overall quality of work as subcontractors cut corners to maintain profitability.

While seeking multiple bids is standard practice, bid shopping usually implies a lack of commitment to the already submitted bid, leading to potential conflicts in the contractor-subcontractor relationship. This distinguishes it from legitimate bidding practices, where proposals are evaluated fairly and transparently.

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