Bid Rigging refers to which of the following?

Bid Rigging refers to a situation where contractors coordinate bids to fix project outcomes. This illicit practice undermines fair competition in the bidding process, as participating contractors agree on set pricing or determine who will win a contract, rather than allowing the bids to reflect the true market value of their services. It can lead to inflated costs for the project, reduced quality of work, and a general distrust in the bidding process.

The nature of bid rigging is to manipulate the outcome to benefit the involved parties at the expense of fairness and transparency. This manipulation can take several forms, such as predetermining the winning bidder, rotating the winning bid among the contractors, or submitting intentionally high bids by some contractors to allow a preferred contractor to win at a lower bid.

By engaging in bid rigging, contractors essentially collude to circumvent established competitive practices, which is illegal and unethical. This not only jeopardizes the integrity of the market but can also lead to severe legal consequences for those involved, making it crucial for contractors to adhere to legal and ethical standards in the bidding process.