Louisiana Contractors License Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Louisiana Contractors License Exam with multiple choice questions. Each question includes hints and detailed explanations to enhance your understanding. Improve your chances of passing the exam on your first attempt.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the result of bid peddling?

Increased competition among contractors
Improved pricing from suppliers
A potentially lower bid than initially offered
A higher overall cost for projects

The correct answer is: A potentially lower bid than initially offered

Bid peddling refers to the practice where a contractor solicits clients by offering to undercut the bids of competitors after the bids have already been submitted. This strategy can create pressure on the original bidder to lower their price in response to the new, lower offer. The primary result of this practice is that it can lead to a potentially lower bid than initially offered, as contractors may feel compelled to adjust their pricing to retain the project and remain competitive. This dynamic can disrupt the bidding process and may encourage contractors to cut prices, sometimes at the expense of project quality or long-term viability. While increased competition and improved pricing from suppliers can sometimes be associated outcomes in a broader sense, they do not specifically define the direct impact of bid peddling in the context of bids already submitted. Additionally, bid peddling does not inherently lead to a higher overall cost for projects; rather, it focuses on the competitive aspect that might reduce the initial bid amount.