Bid Rigging is defined as?

Bid rigging refers to a form of collusion where contractors coordinate their bids to produce a pre-arranged outcome, often resulting in inflated prices for consumers and a lack of genuine competition in the bidding process. This practice undermines the principles of fair competition and can be illegal under antitrust laws. In bid rigging, contractors may agree to take turns winning contracts, submit artificially high bids, or otherwise manipulate the bidding process to ensure that they collectively benefit rather than compete against one another.

This understanding of bid rigging clarifies that it is not simply about modifying bids for a competitive advantage or negotiating with project owners, nor is it about subcontractors meeting to discuss pricing, which can also happen in legitimate market practices. The essence of bid rigging lies in the deliberate coordination of bids between contractors to create a non-competitive environment and secure predetermined outcomes.