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Estimating & Bidding

Bid Peddling

In Plain English

When a subcontractor approaches a GC after bids are in and offers to do the job cheaper than the sub whose price was used.

Definition

Bid peddling is the unethical practice of a subcontractor soliciting work from a general contractor after bid day by undercutting the price of the subcontractor whose number the GC used to win the project. It undermines the integrity of competitive bidding and is widely condemned by industry associations. Bid peddling differs from bid shopping in that the sub initiates the contact.

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