What is it called when contractors collaborate to coordinate their bids to control the project's award outcome?

When contractors collaborate to coordinate their bids with the intention of controlling the project's award outcome, this practice is referred to as bid rigging. Bid rigging is an illegal activity that typically involves two or more contractors agreeing to submit bids in a way that reduces competition and manipulates the bidding process to favor specific contractors. This can manifest in various forms, such as agreeing on who will win the bid or deciding to inflate prices.

The practice undermines fair competition and can lead to inflated project costs, reduced quality of workmanship, and a lack of accountability. It is a serious violation of antitrust laws and can result in significant penalties for the parties involved, both civil and criminal.

Understanding the implications of bid rigging is crucial for contractors, as it highlights the importance of maintaining ethical practices and fostering fair competition within the industry. This not only helps sustain a healthy market but also ensures that clients receive the best value for their projects.