Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 46

Interview the manager of a construction company (for example, a company that does house construction, remodeling, landscaping, or street or highway construction) about how the company bids on prospective jobs. Does it use cost information from former jobs that are similar to prospective ones, for example? Does it have a specialist in cost estimation who estimates the costs of prospective jobs? Write a report to your instructor summarizing the results of your interview.

Step 1 of 4

Bid shopping:

Non-ethical and unfair means are practiced by subcontractor and contractor in bid shopping. Bid shopping is the one where contractor supply bid amounts from one subcontractor to other subcontractor which is non-ethical. This in turn results to jobsite problems, as subcontract bid costs are reduced.