PSI National Association of State Contractors Licensing Agencies (NASCLA) Practice Exam

Bid peddling specifically refers to the practice where a subcontractor lowers their bid price after the award of a contract, attempting to offer a better price than what was submitted initially. This behavior can create ethical concerns and conflicts within the competitive bidding process, as it undermines the integrity of the original bid selection and can lead to disputes among contractors.

In construction and contracting, maintaining clear and honest pricing is essential for fair competition. When a subcontractor engages in bid peddling, it can pressure other bidders and disrupt established contractual agreements, ultimately influencing how projects are managed and completed. This practice is looked upon unfavorably in the industry as it can undermine trust between contractors and subcontractors, potentially leading to legal or financial repercussions.