What is a defining characteristic of bid shopping?

Bid shopping is a practice that occurs after a contractor has won a bid for a project, where they disclose the original bids they received from subcontractors to negotiate lower prices. This practice undermines the competitive bidding process by allowing the general contractor to leverage the information about the original bids to pressure subcontractors into reducing their prices.

By revealing these original bids, the contractor creates a disadvantage for the subcontractors, as they may feel compelled to lower their prices even further to remain competitive. This can lead to decreased profit margins for subcontractors and is often viewed negatively in the construction industry due to the potential harm it causes to the relationships between contractors and subcontractors.

While the other options may describe behaviors associated with bidding and contracts in different contexts, the core element of bid shopping is the act of a contractor revealing original bids to negotiate better prices, making this understanding critical for those involved in the bidding process.