What is considered unwise during the bidding process for a subcontract?

Bid peddling refers to the practice where a subcontractor attempts to win a job by undermining or cutting the price of competing bids after the bids have already been submitted. This is generally viewed as unethical and can lead to a lack of trust between contractors and subcontractors. It disrupts the competitive bidding process, which is supposed to promote fairness and transparency. Engaging in bid peddling often results in skewed pricing and can diminish the overall quality of work, as it prioritizes cost over other important factors such as reliability and competence.

In contrast, competitive bidding, joint ventures, and negotiated contracts are legitimate strategies that can enhance project collaboration and efficiency. Competitive bidding fosters a fair environment where different parties submit offers based on their capabilities. Joint ventures can help combine resources and expertise, while negotiated contracts allow for discussions that can lead to mutually beneficial terms. Each of these methods upholds ethical standards and contributes positively to the construction process.