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
The act of preservation may sometimes be futile.
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.