Why did the AIA historically oppose fee undercutting?

• A. To standardize fees across all projects
• B. To lower competition among firms
• C. To protect the profession from a 'race to the bottom' and antitrust concerns
• D. To ensure only large firms can bid

Answer: (C)

Fee undercutting threatens the integrity and viability of professional practice. When firms aggressively lower fees to win work, it can trigger a race to the bottom where services, time for thorough design, and adequate project oversight are sacrificed just to compete on price. The AIA opposed this to guard the profession against that downward spiral and to avoid antitrust issues that can arise if firms coordinate or signal unusually low bids, which could be seen as price fixing or restraint of trade. So the emphasis is on maintaining high standards and lawful competition, not on eliminating competition or favoring large firms.