Is it illegal for a company that is outsourcing a project to tell a contractor that they have been outbid?
Evan G asked:
And once they are outbid the contractor then changes the bid to a cheaper price in order to win the job and the company gets a better price.
And once they are outbid the contractor then changes the bid to a cheaper price in order to win the job and the company gets a better price.
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Nope. Not illegal at all. Happens every day. If you suspect foul play as in price fixing, you must get written documentation from all parties involved and that is darn near impossible. Alex E
as far as I know, they can tell you that the sky is brown if they think it will help them negotiate a lower price. If you have some proof that they lied for their own gain, there might be something you could do legally, but even that may depend on the local laws concerning fair business practices.
For the most part, however, no company is beholden to disclose to a contractor the status of any bids (or lack of) made on a contract. Angelo
The company has a couple of ways to go under a sealed bid process
1] Notify the winning bidder and award the contract – they also notify all losing bidders
2] Refuse to accept any bid and invite all bidders to re-bid more competitively.
They may not notify a select bidder for rebid, it must be all bidders. They can reject any bid that does not meet the requirements of the RFP. Twitter Bird