What is meant by Bid Shopping?

Bid shopping refers to a practice where a general contractor, after receiving bids from subcontractors, attempts to leverage those bids by soliciting lower offers from other subcontractors. This often occurs after a bid has been submitted and may be seen as unethical because it undermines the original bidding process and can pressure subcontractors to lower their bids artificially. The practice can lead to a compromised quality of work and relationships, as it may exploit subcontractors who have already invested time and resources into preparing their original proposals.

In this context, bid shopping can negatively impact the construction industry, fostering an environment where competitiveness is based not on quality or reasonable pricing but on the threat of being underbid. This practice can ultimately damage trust between general contractors and subcontractors, potentially affecting future projects and collaborations.

The other choices reflect practices that are more ethical or standard within the construction process rather than the controversial nature of bid shopping. Selecting the best subcontractor focuses on quality and qualifications rather than cost-cutting, determining project costs involves comprehensive budgeting without the ethical dilemmas of negotiating downwards, and evaluating qualifications emphasizes the subcontractor's ability to perform as per project requirements.