Construction Management Practice Exam 2025 - Free Construction Management Practice Questions and Study Guide

Bid peddling refers to the practice of offering additional incentives, such as discounts or other advantages, to persuade the project owner to choose one bid over others. This can involve providing deeper price cuts or enhanced services post-bid submission to make a bid more attractive. Companies engaging in bid peddling might believe they can sway the buyer's decision by making their offer seem more advantageous or compelling than those of competitors.

This practice is often viewed as unethical because it can distort competition and undermine the integrity of the bidding process. By engaging in bid peddling, contractors may create an environment where the selection is based more on negotiation tactics than on the merits of the bids presented.

The other choices relate to different bidding practices that do not align with the specific definition of bid peddling. For instance, reducing bid prices to secure contracts can reflect competitive pricing strategies but doesn't capture the essence of offering additional incentives after the initial bid. Presenting multiple bids for transparency pertains to ensuring clarity in the bidding process rather than using incentives to seal a deal. Soliciting bids from subcontractors focuses on the procurement aspect of construction management, again differing from the nature of bid peddling.