AACE International Exam CCP Topic 5 Question 9 Discussion

Deliberate low bidding, sometimes referred to as 'buying the job,' is a strategy where a contractor bids below cost to win a contract, with the expectation of recouping losses through change orders, future projects, or other means.

Key Points:

Reasons for Low Bidding:

Survival: Contractors might low bid to secure work during tough economic times.

Reducing Competition: A low bid can push competitors out of the market.

Detecting Errors: Identifying significant errors in the purchaser's RFQ might lead to a strategic low bid.

Backing Out of Bid Competition:

This option does not align with the strategy of low bidding. Backing out would remove the contractor from the competition entirely, which is contrary to the purpose of low bidding.

Conclusion: The correct answer is B. Backing out of the bid competition because this action is not a reason for low bidding---it is the opposite of participating in the bid.