Which of the following is considered an unethical bidding technique?

Prepare for the Associate Contractors License Exam. Study using flashcards and multiple choice questions, each question is equipped with hints and explanations. Get exam-ready today!

Bid shopping is considered an unethical bidding technique because it involves a contractor disclosing or soliciting the bids of subcontractors to other subcontractors in order to secure a lower price after receiving initial bids. This practice undermines the credibility of the bidding process and can lead to distrust among subcontractors, as it puts pressure on them to lower their prices without proper justification or consideration of their original bids. Bid shopping can lead to poor quality work as subcontractors may cut corners to meet reduced costs, ultimately harming project standards and integrity.

On the other hand, bid rigging involves collusion among bidders to fix prices or divide markets, which is illegal and heavily penalized, while bid peddling typically refers to a contractor seeking to undercut competitors by offering lower prices without compromising on quality, which is sometimes permissible in competitive bidding contexts. Contractor noncompliance does not specifically pertain to bidding techniques but rather to failing to adhere to contract terms, which is a separate issue in the contracting realm.

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