Construction Management Practice Exam 2025 – Complete Study Guide

Bid shopping is considered detrimental to the efficiency of the bidding process primarily because it compromises the integrity and competitiveness of the procurement system. This practice occurs when a contractor reveals the bids submitted by subcontractors to other subcontractors in order to negotiate lower prices. This not only undermines trust among bidders but can also lead to lower-quality work, as subcontractors may cut corners to offer more competitive pricing.

Additionally, bid shopping can create an atmosphere of distrust among contractors and subcontractors, which can discourage participation in future bidding processes. Subcontractors may feel less inclined to submit bids if they believe their original offers will be used against them, ultimately leading to fewer bids and less competition. This may drive up costs and create inefficiencies as the project progresses, as the reliance on lower bids could come at the expense of quality and reliability.

In contrast, practices like transparent communication, thorough project planning, and open competitive bidding enhance the bidding process by fostering a fair, efficient, and trust-based environment, ultimately leading to more favorable outcomes for all parties involved.