AACE International CCP Exam - Topic 5 Question 9 Discussion

Actual exam question for AACE International's CCP exam

Question #: 9
Topic #: 5

[All CCP Questions]

Deliberate low bidding is often referred to as buying the job. Which of the following would not be a reason for low bidding?

ASurvival

BBacking out of the bid competition

CReducing cm eliminating competition

DDetecting significant errors in the purchaser's request for quote

Show Suggested Answer

Suggested Answer: B

Deliberate low bidding, sometimes referred to as 'buying the job,' is a strategy where a contractor bids below cost to win a contract, with the expectation of recouping losses through change orders, future projects, or other means.

Key Points:

Reasons for Low Bidding:

Survival: Contractors might low bid to secure work during tough economic times.

Reducing Competition: A low bid can push competitors out of the market.

Detecting Errors: Identifying significant errors in the purchaser's RFQ might lead to a strategic low bid.

Backing Out of Bid Competition:

This option does not align with the strategy of low bidding. Backing out would remove the contractor from the competition entirely, which is contrary to the purpose of low bidding.

Conclusion: The correct answer is B. Backing out of the bid competition because this action is not a reason for low bidding---it is the opposite of participating in the bid.

by Minna at Sep 14, 2024, 10:26 PM

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Nikita

4 months ago

Reducing competition is definitely a tactic used often.

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Lovetta

4 months ago

Wait, are we sure about that? Seems off to me.

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Man

4 months ago

I think backing out of the competition is a valid reason too.

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Kati

5 months ago

Totally agree, it’s all about survival sometimes.

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Bok

5 months ago

Low bidding can really mess up the market.

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Flo

5 months ago

I think survival and competition are definitely reasons for low bidding, but I'm leaning towards D as the answer since it seems more about correcting mistakes than bidding strategy.

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Joesph

5 months ago

Reducing or eliminating competition sounds like a tactic used in low bidding, but I can't recall if detecting errors would be a reason.

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Ashleigh

5 months ago

I feel like I've seen a similar question before. Backing out of the bid competition seems like it wouldn't be a reason for low bidding, but I'm not completely confident.

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Anissa

6 months ago

I remember discussing low bidding in class, but I'm not sure which option doesn't fit. I think survival might be a reason for low bidding, though.

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Idella

6 months ago

I feel confident about this one. The reason that would not be for low bidding is detecting significant errors in the purchaser's request for quote. That's a different strategy than just trying to underbid the competition.

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Dalene

6 months ago

Okay, I've got this. The key is to identify the reason that would NOT be for low bidding, or "buying the job." I think I know the right answer.

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Melissia

6 months ago

Hmm, I'm not totally sure about this one. I'll have to think it through carefully and consider each option.

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Percy

6 months ago

This question seems straightforward, but I want to make sure I understand the concept of "buying the job" before I answer.

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Alise

6 months ago

This question is testing our knowledge of the AI client's behavior. I'll need to apply what I know about automated installations to figure out the correct answers.

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Dell

1 year ago

Low bidding? More like 'no bidding' if you ask me. I'll take 'Detecting significant errors' for 500, Alex. At least that one won't land you in the slammer!

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Harrison

1 year ago

Deliberate low bidding, huh? Sounds like a recipe for a construction project that's one step away from a dumpster fire. I'll go with D - detecting errors is the only one that doesn't scream 'shady business practices'.

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Paris

1 year ago

Detecting errors in the purchaser's request for quote is important for accuracy.

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Michel

1 year ago

Backing out of the bid competition seems like a sneaky move.

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Alica

1 year ago

I think survival is a common reason for low bidding.

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Martin

1 year ago

I agree, deliberate low bidding can lead to a lot of problems.

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Miesha

2 years ago

Survival? More like 'thrive-val' if you ask me. Gotta do what you gotta do to stay in the game. But I think D is the answer that won't get you kicked out of the game.

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Jestine

2 years ago

Low bidding is like a game of chicken, except the prize is a construction contract. I'll have to go with C - reducing competition is the most 'cut-throat' option here.

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