Collusion
Glossary of procurement terminology, A guide for suppliers, Published by the London Borough of Richmond upon Thames in April 2012, suggests that collusion is: ‘A fraudulent arrangement between two or more parties whereby prices or service requirements are manipulated to get round competitive tendering.’
As part of a selective tendering process, tenderers may be required to complete a ‘Declaration of Non-Collusion’ (sometimes referred to as a ‘Declaration of Non-Collusion Form’ or a ‘Certificate of Non-Collusion’). This is intended to prevent corruption in the tender process by requiring a declaration from the tenderer that they have not colluded with any other party in the preparation of their tender.
For more information see: Declaration of non-collusion.
NB The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines collusion as: ‘Where two or more potential suppliers (or the purchaser and one or more suppliers) secretly co-operate to undermine the competitiveness of a tender process.’
Public procurement toolbox, terminology, published by the Organisation for Economic Co-operation and Development (OECD), states: ‘Collusion involves a horizontal relationship between bidders in a public procurement, who conspire to remove the element of competition from the process by raising or fixing the prices and reducing output in order to increase profits. Bid rigging is the typical mechanism of collusion in public contracts. (see Bid rigging).’
[edit] Related articles on Designing Buildings
- Anti-bribery and Ethics - A Construction Perspective.
- Bid evaluation.
- Bid rigging.
- Bribery in construction.
- Construction contract.
- Contract award.
- Contract negotiation.
- Cover pricing.
- Declaration of non-collusion.
- Monopoly.
- Procurement route.
- Record keeping.
- Rescission.
- Tender documentation.
- Tender processes.
- This is why construction is so corrupt.
Featured articles and news
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
An introduction to WERCS and WEEE responsibilities
Dealing with 2 million tonnes of waste equipment a year.
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.