Antitrust Analysis of Competitive Bidding in Bid Depository Systems
Publication: Journal of Professional Issues in Engineering Education and Practice
Volume 119, Issue 1
Abstract
A major portion of construction in the United States involves competitive bidding. Participants in the delivery of construction projects have an interest in the regularity of the bidding process. Bid shopping is a general contractor practice focused on lowering bid prices of trade contractors. This practice has the potential to affect the quality of construction delivered and the viability of individual trades. Such industry practices have given rise to control of bidding, in particular to bid depository, with overall beneficial results. The bid depository interjects a neutral party between the general contractor and the trade contractors to receive trade bids and present them in a timely fashion to meet overall project bidding. Where activities of the bid depository have restrained bidding, antitrust actions have been brought. As a consequence, bid depositories have had a checkered existence in this key area of the construction industry. This paper reviews the rationale for bidding controls, and the legal issues involved in bid depository operation. Guides for lawful operation of a bid depository are offered.
Get full access to this article
View all available purchase options and get full access to this article.
References
1.
Ahlborn, M. F. (1986). “An evaluation of trade contractor attitudes toward construction industry practices,” MSc thesis, Michigan Techn. Univ., Houghton, Mich.
2.
Becker, R. A. (1991). “The use of bid depositories in the construction industry,” MS thesis, Michigan Techn. Univ., Houghton, Mich.
3.
Federal Register. (1987). 52(129).
4.
Haltenhoff, C. E. (1986). “CM systems and variations.” Construction management; a state‐of‐the‐art update. ASCE, New York, N.Y.
5.
Holmes, W. C., and Holmes, D. E. (1991). Antitrust law sourcebook. Clark Boardman Co., New York, N.Y.
6.
“Oakland‐Alameda Builders Exchange vs. F. P. Lathrop Construction Co.” (1971). Trade Cases Sec. 73524. Commerce Clearing House, Inc., Chicago, Ill.
7.
“Tekton, Inc. et al vs Builders Bid Service of Utah, Inc., and Utah Sub‐Contractors Bid Service.” (1982). Court Decisions Sec. 64,715, Commerce Clearing House, Inc., Chicago, Ill.
Information & Authors
Information
Published In
Journal of Professional Issues in Engineering Education and Practice
Volume 119 • Issue 1 • January 1993
Pages: 31 - 43
Copyright
Copyright © 1993 American Society of Civil Engineers.
History
Received: Dec 2, 1991
Published online: Jan 1, 1993
Published in print: Jan 1993
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.