Belt Auction

What is it called when a person bidding on a construction job is told what the budget is? ?

Public Comments

1. I'm a builder. A budget is. listed below Labor 20 hours for 1 man at 25.00 per hour = 500.00 10 windows @ 225.00 each = 2,250.00 window install Labor + 210.00 each =2,100.00 painting 4 hours = 25 per hour = 100.00 sidewall shingling materials = 350.00 Labor for sidewall shingling 2hours @ 25.00 per hour = 50.00 Total budget labor and materials $ 5,350.00 Each item is part of the budget Get the picture ?
2. I think the questioner is asking if there is anything wrong if a certain bidder is told (in the actual bidding process) what/how much the project budget is, or in effect what the answer is before his bid is submitted. While this may not be illegal, it certinly is not good business practice because it has compromised the position of the bid. The person bidding now has inside information and is no longer an independent or objective bidder. It is not fair to the other bidders and is unethical. Could be considered collusion.