Oregon Construction Contractors (CCB) Practice Test

What does bid peddling refer to in the construction industry?

1. Offering lower prices after bids are submitted

2. Sharing confidential bid information

3. Bidding in an auction style

4. Multiple bids submitted for one project

The correct answer is: Offering lower prices after bids are submitted

Bid peddling refers to the practice of contractors offering lower prices to a project owner or general contractor after bids have been submitted. This usually occurs when a contractor tries to undercut competitors to secure a project, essentially attempting to gain an advantage after the competitive bidding process has officially closed. This practice can undermine the integrity of the bidding process and may lead to a situation where the initial bids are no longer reflective of true market conditions. It can create tensions among contractors and can negatively impact project owners' perceptions of fairness in the bidding process. In this context, the other options reflect different concepts. Sharing confidential bid information is a violation of bid integrity and can result in serious legal and professional repercussions. Bidding in an auction style is a method that does not apply to standard construction bids, which typically follow a sealed-bid format. Multiple bids submitted for one project do occur in the bidding process, but this is a standard element of competitive bidding and does not reflect the manipulation or unethical behavior associated with bid peddling.