bid shopping


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bid shopping

The practice of a general contractor estimating the cost for subcontractors in order to prepare a bid for construction work,and then attempting to induce those same subcontractors to lower their price below the estimate.

References in periodicals archive ?
Yet the company boasts: "What really sets bid shopping apart is the amount of time and effort we spend getting to know our products."
Big shoulder party dress, PS60, A Wear Embroidered fringe clutch, PS8, Matalan Sheer shoe boots, PS65, Jonathon Kelsey Edition at Debenhams Gold cuff, PS39.99, LRCO jewellery at Bid Shopping bidtv.com
Also, it eliminates bid shopping." Bid shopping is when a prime will obtain a quote from a potential sub prime, then find another company willing to undercut that bid; the result can be substandard workmanship.
Thus, specialty contractors are lower on the food chain and suffer most from what we consider unethical bid shopping practices.
It's sometimes difficult for purchasers of construction services, and the general public, to understand why bid shopping is "fool's gold." A building program is not a commodity, the same as buying a bucket of bolts.
Bid shopping has polarized the construction industry, most notably in the major construction markets.
Horschel detests bid shopping - a not illegal but certainly questionable practice - and refuses to participate.
According to Representative Kanjorsiti, the purpose of the bill is to ensure quality and best value with respect to federal construction projects by prohibiting bid shopping; The bill defines "bid shopping" as the practice of divulging, or requiring a contractor or subcontractor to divulge, a bid or proposal to another prospective contractor or subcontractor in order to secure a lower bid or proposal.
Barriers to fair competition include exclusion from private subcontracting opportunities, resistance by prime contractors to working with minorities and resulting bid shopping, discrimination in obtaining surety bonds, and discrimination by suppliers who give special prices to non-minority firms.
Kanjorski introduced in the House a bill titled "Construction Quality Assurance Act of 2001." The bill is intended to assure quality and the best value with respect to federal construction projects by prohibiting the practice known as bid shopping. Bid shopping refers to the practice of contractors pressuring subcontractors, after the award of a contract, to submit a lower bid without passing the savings onto the government.