Littleton, CO asked in Contracts for Colorado

Q: If a company allows a third party to under bid a current contract, is that bid rigging?

An independent contractor signs a contract for a specific rate. The company who hires them for the job calls and tells them a third party wants their job for less money than what they're currently making, and to keep the job, they will need to accept an even lower amount than the third party. Is that bid rigging?

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1 Lawyer Answer
Andrew John Contiguglia
Andrew John Contiguglia
  • Denver, CO
  • Licensed in Colorado

A: If you have a signed contract, then you have a signed contract. The terms will control termination and whether you will be obligated to lower your bid in the event someone underbids. But perhaps you get a right to match or get out of the deal. But this is all contract-driven. If there is a signed agreement, neither party can breach it unless it wants to face a lawsuit and damages. You would have to evaluate what your damages are going to be. As for bid-rigging, it could be if it can be proven that the parties manipulating the value of the deal are "in on it" together.

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