The Games Dishonest Tendering Companies Play

Dec 14 08:52 2009 Dr.Irfan Ahmad Print This Article

Its is clear 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. 

Allocation Of Tendering Areas

 

Allocation of tendering areas are agreements in which tendering competitors divide markets among themselves. In such plans,Guest Posting 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.

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About Article Author

Dr.Irfan Ahmad
Dr.Irfan Ahmad

Dr.Irfan Ahmad is the Chief Editor of www.tenderserviceonline.com and CEO Tender Service Pakistan.He has twenty years of experience in providing tender information services to the clients. He has written two books on tendering by the name of "Managing Tender Business" and "Combating Procurement Frauds"

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