Construction Management Practice Exam 2026 – Complete Study Guide

The term used when a general contractor seeks quotes from subcontractors they do not intend to hire is "bid shopping." This practice typically occurs after the general contractor has secured the project and is looking to reduce costs by soliciting lower bids from subcontractors, even if they have already received bids from other subcontractors who may have initially been considered for the work.

Bid shopping can lead to ethical concerns within the construction industry, as it may undermine the original bidders' trust and can create a competitive environment that values price over quality and reliability. Although this practice can result in cost savings for the contractor, it can jeopardize relationships with subcontractors and may affect the overall quality of the work if lower-cost options are chosen.

In contrast, estimating refers to the process of predicting the costs of project services and materials before the project begins. Marketing refers to efforts to promote construction services and attract new clients or contracts, while bid peddling involves subcontractors trying to get the general contractor to consider their bid after the bidding process has closed. Understanding these distinctions is essential for recognizing the implications of bidding practices in construction management.