Oregon Construction Contractors (CCB) Practice Test

What does the term "bid shopping" imply?

1. Shopping for the best supplier for materials

2. Negotiating lower bids after they are submitted

3. Comparing multiple bids for a project

4. Canceling bids before selection

The correct answer is: Negotiating lower bids after they are submitted

Bid shopping refers specifically to the practice of negotiating lower bids after they have been submitted. This often occurs when a contractor receives bids from different subcontractors and then reveals these bid amounts to other subcontractors with the intention of obtaining a lower bid before the work is awarded. This practice raises ethical concerns as it can undermine the trust between contractors and subcontractors, as well as potentially lead to lower quality work if subcontractors are pressured to lower their prices excessively. Comparing multiple bids for a project might seem relevant, but it does not capture the essence of bid shopping, which focuses more on leveraging submitted bids for better pricing rather than simply evaluating them. Likewise, shopping for the best supplier for materials is a distinct process related to procurement rather than bidding. Lastly, canceling bids before selection has no relevance to the definition of bid shopping, as it fails to encompass the negotiation aspect that is integral to the concept.