What is the unlawful practice known as bid rigging?

Bid rigging is a form of collusion among contractors where they agree on bid prices or work together to manipulate the bidding process to ensure that one or more of them win contracts unfairly. This arrangement prevents genuine competition, leads to inflated prices, and undermines the integrity of the bidding process.

This practice can take various forms, such as contractors taking turns winning bids or coordinating on who will submit a higher or lower bid to control the market. As a result, it creates an environment where the true market value of the work is obscured, harming clients and honest contractors alike who may lose out on fair opportunities.

The other options focus on different aspects of unethical business practices but do not capture the essence of bid rigging specifically. Offering unrealistic bids may involve overinflating costs but lacks the collusive agreement aspect. Raising construction costs without permission pertains more to overcharging rather than manipulating the bidding process itself. Negotiating better contract terms is a standard business practice and does not reflect any unlawful activity.