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Challenges that may arise in the construction bidding process

On Behalf of | Mar 2, 2023 | Construction Disputes |

There may be numerous stages involved with preparing to initiate operations on a new construction project. Before the planning stages even begin, you might face a need to compete with other companies during the bidding process and this can be one of the most competitive aspects of operating in the construction industry. 

While the bidding process may function to preserve the interests and rights of everyone involved, that does not mean that you won’t face challenges along the way. There are some types of bidding behaviors others might deploy that may border on unethical in nature, and some actions may even be unlawful. 

Bidding behaviors 

While bidding on construction projects can be stressful and intimidating enough as is, things may grow even more challenging with the presence of unfair or illegal behaviors. Some issues you might encounter during this process may include: 

  • Bid shopping:  Bid shopping may occur when project owners choose to provide information on the lowest current offer with bid competitors in hopes of further reducing project costs. 
  • Bid chiseling:  Bid chiseling is a prevalent issue that may occur when project owners attempt to negotiate a reduction in costs and fees after accepting the other party’s bid for the project 
  • Bid peddling:  Experts indicate that bid peddling is a type of behavior in which a company that has already placed a bid on a project tries to beat out a competitor by placing a lower offer after the initial bidding process. 
  • Bid rigging:  While the construction industry may simply view the above practices as unethical, the process of rigging the bidding process is illegal, but that hardly means it does not occur. 

While knowing the challenges you might face during the bidding process may be vital to protecting your company’s interests, sometimes things might not always be as simple as they seem. 

Protecting your company’s future 

Bidding on projects may be an integral component of operating in the construction industry, and the level of competition in this area may be exceedingly high. Creating a strategy for how best to approach such a process could be integral to promoting growth and success, but this might seem challenging when there are unethical or illegal behaviors at play. Seeking insight into your available options and how best to address such issues might be essential to safeguarding the future of your New York construction endeavors.