What would be a consequence of engaging in bid shopping?

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Prepare for the Tennessee Business and Law Exam. Study using flashcards and multiple-choice questions with explanations and hints. Ace your exam!

Engaging in bid shopping can significantly increase the chances of project failure. Bid shopping refers to the practice where a general contractor solicits bids from subcontractors and, after receiving those bids, attempts to negotiate a lower price with other subcontractors or use the lowest bid as leverage against others. This practice can undermine relationships with subcontractors, leading to a lack of trust and collaboration.

Moreover, when subcontractors feel undervalued and disrespected due to bid shopping, they may not commit fully to their projects, resulting in decreased quality of work and potential delays. These factors can culminate in a higher likelihood of project failure, as the necessary cooperation and quality assurance from subcontractors are compromised. Therefore, the outcome is often not only financial but also impacts the integrity and success of the project itself.

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