Which of the following practices is considered unethical in bidding?

Prepare for the Arkansas Contractor Business and Law Exam. Study with flashcards and multiple choice questions. Each question comes with hints and explanations. Ace your exam confidently!

Bid shopping is considered an unethical practice in the bidding process because it involves soliciting lower bids from subcontractors after a prime contractor has already submitted a bid, with the intention of securing a cheaper price than what was originally quoted. This practice undermines the integrity of the competitive bidding process and can lead to distrust among subcontractors, harming relationships in the construction industry. It may also compromise the quality and safety of the completed project, as subcontractors may be pressured to cut corners to meet lower price expectations.

In contrast, submitting a bid for a project, preparing detailed project specifications, and negotiating terms with subcontractors are all standard practices within the industry. Submitting a bid is a necessary part of the contracting process, while preparing detailed specifications helps ensure that all parties have a clear understanding of the project requirements. Negotiating terms with subcontractors is also a common practice, as it helps establish mutually beneficial agreements and clarifies expectations for all parties involved. Thus, while these actions are part of normal business operations in construction, bid shopping is viewed as unethical because it disrupts fair competition and transparency.

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