|
Bid Rigging during Tender process |
Sven
|
#1
25-June-2010
(time:
16:27)
|
Posts:
8
Joined:
11-July-2009
|
Hello,
I was wondering what the main reason is on a invited tender process to keep the competing tenderes hidden from each other (as recommended by NZIA). Simpson & Grierson Lawyers website states:
Bid-rigging is where competitors collude to determine the outcome of a competitive tender process through fixing the price of goods and/or services offered in bids to potential customers (the parties to the arrangement having previously decided which of them should be successful in a particular process).
But why would competing tenderes disclose and openly discuss the prices they are going to submit?
cheers
Sven
--------------------------------------------------------------
Sven Heger
Architectural Graduate
http://www.svenheger.com
|
|
|
|
Barry Dacombe
|
#2
28-June-2010
(time:
09:51)
|
Moderator
Posts:
12
Joined:
15-June-2009
|
Hi Sven,
I have answered your question in two posts:
First post:
There are two principle issues raised by your question.
Firstly, the tender process you describe involves your client seeking prices from pre-selected builders using you as adviser and administrator of the process. You have a confidentiality issue in that other than answering queries from the tenderers all other disclosures of information about the tenders must have your clients authority. In the query you describe the tenderers are "invited" and therefore all other aspects of the tenderers ability to perform the work, other than price, have been deemed to satisfy your (and your client's) requirements. Price is now the only criterion for comparison and assessment before awarding the tender.
Go the the post below for remainder of answer to your question.
Barry Dacombe
Barry.
--------------------------------------------------------------
Barry J Dacombe, Principal Barry J Dacombe Architect
|
|
|
|
Barry Dacombe
|
#3
28-June-2010
(time:
09:52)
|
Moderator
Posts:
12
Joined:
15-June-2009
|
Second post from Barry Dacombe.
Secondly, "bid-rigging" as referred to above is not uncommon and in the pre-tender period many things can occur that can affect the desire of a tenderer to place a competitive bid. They gain other work that renders their ability to do your project at risk for example. All tenderers are quite capable to find out for themselves who is tendering for your project. The important thing here is that the information did not come from you. "Borrowing" another tenderers price is also common where tenderers do not want the job for some reason or another and do not want to be seen to have to withdraw and damage their reputation with you or your client. Adding a few dollars to another tenderers price keeps them competitive in your eyes without the risk of loss of reputation and getting a job they don't want.
I trust this answers your query.
Barry Dacombe
--------------------------------------------------------------
Barry J Dacombe, Principal Barry J Dacombe Architect
|
|
|
|
Sven
|
#4
29-June-2010
(time:
18:25)
|
Posts:
8
Joined:
11-July-2009
|
Thanks a lot Barry. Very comprehensive reply. Much appreciated.
--------------------------------------------------------------
Sven Heger
Architectural Graduate
http://www.svenheger.com
|
|
|