RED FLAGS OF CORRUPTION, BID RIGGING  AND FRAUD IN DEVELOPMENT PROJECTS

Click on a red flag to learn about the red flag and match it to a scheme; click on scheme to see a description of the scheme, a complete list of red flags for that scheme, and follow up steps to see if the scheme is actually or probably present.

RED FLAGS RELATED SCHEMES

PROCUREMENT PLANNING STAGE

Manipulation of procurement thresholds to avoid prior review Unjustified sole source awards , Corruption

Purchase of unnecessary or inappropriate items Corruption

PREQUALIFICATION AND SHORT LISTING

Inadequate evaluation criteria or procedures Manipulation of bids , Excluding qualified bidders, Corruption

Unreasonable prequalification requirements Excluding qualified bidders , Corruption

BIDDING DOCUMENTS

Ambiguous, incomplete or misleading contract specifications Unbalanced bidding , Corruption

Contract specifications are too narrow or too broad Rigged specifications , Excluding qualified bidders , Corruption

Failure to make bidding documents available Excluding qualified bidders , Corruption

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Short or inadequate notice to bidders Excluding qualified bidders , Corruption

BIDDING

Unusual bidding patterns Collusive bidding

Apparent connections between bidders Collusive bidding

Bidder not listed in business or telephone directories. Hidden Interests , Collusive bidding

Multiple contract awards to the same company Corruption

Qualified companies fail to bid Excluding qualified bidders , Collusive bidding , Corruption

Rotation of winning bidders   Collusive bidding

Unreasonably high line item bids Collusive bidding

Unreasonably low line item bids Unbalanced bidding , Corruption

Use of questionable agents or subcontractors Corruption

BID OPENING 

Non-transparent bid-opening procedures Manipulation of bids , Excluding qualified bidders , Corruption

BID EVALUATION

Award to other than the lowest qualified bidder Manipulation of bids , Corruption

Disqualifications that are poorly supported Excluding qualified bidders , Corruption

Pressure to select a certain contractor subcontractor or agent Corruption

Winning bid is very close to budget or estimate    Unbalanced bidding , Corruption

DRAFT CONTRACT

Long unexplained delays in contract award or negotiations Manipulation of bids , Corruption

CONTRACT DELIVERY

Complaints regarding poor quality goods, works or services Failure to meet contract specifications , Corruption

Continued acceptance of poor quality goods, works or services Corruption

Delivery of poor quality goods, works or services Failure to meet contract specifications

CONTRACT CHANGES

Questionable contract amendments (“change orders”)  Change order abuse, Corruption

PAYMENT

Questionable invoices False inflated or duplicate invoices , Corruption

Payment of unjustified high prices False inflated or duplicate invoices , Corruption

Absent or questionable documentation False inflated or duplicate invoices