A municipality wishes to reconstruct eight kilometres of its roads. The four road contractors in the area secretly agree that only one contractor would bid (and would bid high) on the project, and later the successful bidder would divide up the work amongst them by subcontract, two kilometres each. This bid would constitute
A) double ticketing.
B) conspiracy.
C) a restrictive trade practice.
D) bid-rigging.
E) collusion.

Question

Quizplus · Accepted Answer

This scenario describes bid-rigging, where contractors agree in advance who will submit the winning bid, undermining the competitive bidding process.

A Municipality Wishes to Reconstruct Eight Kilometres of Its Roads