The Games Dishonest Tendering Companies Play

Allocation Of Tendering Areas

Allocation of tendering areas are agreements in which tendering competitors divide markets among themselves. In such plans, competing companies allocate specific customer or type of customers, products, or territories among themselves. For example, one tenderer will be allowed to sell to, or tender on contracts let by, customers allocated to the other competitors. In other schemes, competitors agree to sell only to customers in certain geographic areas and refuse to sell to, or quote intentionally high prices to, customers in geographic areas allocated to conspirators companies.


Low Price – High Price Game

A tendering company, in collusion with procurement official, can submit a low bid to insure winning a contract, and then increase its price and profits by submitting change order requests after the contract is awarded.

A tendering company, acting alone or in collusion with contract personnel, can submit unjustified or inflated change order requests to increase profits, or as the result of corruption, use the change order process to extend a contract that should be re-bid.

Union Formation Of contractors

Dishonest tendering company can submit multiple bills on different contracts or work orders for work performed or expense incurred only once. A contracting official can facilitate the plan and share in the profits by writing similar work orders under different contractors and accepting the multiple billings.

The Mutual Benefits

Its is evident from the above mentioned fraud plans that it is either a corrupt procurement personal or contractors or both who gets the cream, and the poor public sector is burdened with high priced low quality goods of services. Until the code of ethics in tendering is followed strictly the situation is unlikely to change in near feature.