Bid_Peddling_And_Bid_Shopping_In_The_Construction_Industry

Bid Peddling And Bid Shopping In The Construction Industry Bid Peddling and Bid Shopping in the Construction Industry In this paper I will be discussion the effects of bid peddling and bid shopping on the different roles of those involved in the construction industry. I will touch on how prime contractors, sub-contractors, owners, and the design professionals are affected by this practice. A prime contractor submits a bid for a construction project based in part on bids that they have received from subcontractors for work associated with the job. To arrive at the bid figure, they use the lowest bid for each item of work on a project (regardless of who submits the bid, their experience, or reputation) and may then deduct a percentage of the total. To avoid having their bid shopped, subcontractors often submit their bids at the deadline. Once a prime contractor is awarded the contract, they return to the subcontractors and pressure them to knock down their prices in order to get the job. They call in all subcontractors that could bid, showing them the bid price less a percentage for each subcontract. They ask subcontractors to bid for the work with permission to use any means possible to achieve a lower bid, work, shopping, design, project, professional, peddling, subcontractors, contractor, should, owner, bids, construction, shopping/bid, prime, each, contractors, contract, lowest, job, time, system, specifications, responsibility, performance, often, cost, subcontractor, separate, received, price, possible, means, general, costs