What does "bid shopping" refer to in the construction industry?

In the construction industry, "bid shopping" specifically refers to the practice of seeking lower bids from subcontractors after a project bid has already been submitted. This can occur when a contractor has submitted a bid to the client but then attempts to negotiate lower prices from subcontractors by revealing the initial bids they provided. This practice raises ethical concerns, as it undermines fair competition and can lead to distrust among subcontractors who may feel they are being used to secure a project's price without assurance of being awarded the work.

The other options, while related to various aspects of the construction bidding process, do not accurately capture the definition of bid shopping. Negotiating better terms with suppliers focuses on procurement aspects rather than bid-related practices. Developing competitive strategies for project bidding reflects a proactive approach to bidding that does not involve lowering initial bids post-submission. Reviewing previous bids for cost analysis pertains to a retrospective assessment aimed at enhancing future bids, rather than the unethical practice of bid shopping.