Court Rules in Favor Of Subcontractor in 'Bid Shopping' Termination Dispute

摘要

We begin the new year with a fresh look at a widely deprecated business practice in the construction industry: "bid shopping." There are many reasons why this practice is frowned upon as "unethical" by most industry organizations. When a contractor seeks a lower price from a competitor bidder after contract award, it usurps the subcontractor's rightful business opportunity, calling into question the competitive process. Others argue that bid shopping potentially leads to substandard performance or material installation because of the necessities of forced underbidding. Most agree, however, that bid shopping is inimical to the client's interests and prevents long-term successful business relationships from forming.