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Ethics in Practice : E-Learning Package for Professional Engineers | Graphic version
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Tendering

How to avoid unfair tendering
Call for competitive tenders

Implement a competitive tendering process; this allows prices and service quality to be easily compared and therefore makes it difficult to hide favouritism and corruption.

Evaluate tenders according to both price and non-price factors to ensure that you obtain the best quality for the price paid or the lowest price for the specified quality of the project or services procured.

Set up a transparent system for appointing contractors

Formulate systematic and consistent procedures with well-defined financial and decision-making authorities. Administrative guidelines and tender documents should include appropriate warnings against bribery and the requirement to declare potential conflicts of interest.

Develop a list of approved contractors/suppliers for different works or supply of materials based on prescribed criteria and review it regularly. The listing criteria should not be so stringent that it limits healthy competition and it should be made known to all potential bidders in the call for registration.

Invite only the contractors/suppliers on the approved list to tender. Carefully scrutinise any addition or deletion.

Make procurement requirements, rules and decision-making criteria readily accessible to all potential suppliers/contractors. Make any additional information available to all bidders at the same time.

Set up a joint pre-tender meeting for bidders to enquire about and discuss any issues related to the project if necessary.

Ensure that the opening of bids is witnessed and conducted independently and that all decisions are properly recorded.

Set up an independent panel, e.g. a tender board, for selecting and approving tenders.

Select contractors/suppliers on the basis of their qualifications, the merits of their offers and the criteria defined in the tender documents.

Keep tender documents and information from tenderers confidential before awarding contracts.

Make sure arrangements for negotiated tenders are made known to all tenderers before the bidding is conducted.

Set up a counter-checking mechanism and conduct random spot checks

Set up counterchecking mechanisms, e.g. involve more than one officer in contract negotiations, procurement of materials, authorisations for acceptance of goods on delivery, etc.

Conduct frequent spot checks, including random inspections of product quality, quotations, receipts, procurement records, etc.

Keep proper work records, e.g. quotations, contracts, etc., for random verification by senior staff.

Check contractors' performance records

Monitor and evaluate the performance of contractors regularly and immediately after the contract has ended, and ensure that the evaluation is properly recorded for reference in future tenders.

Maintain periodical contacts with suppliers or contractors in order to provide a direct channel for them to express views and grievances. It is better if these contacts are initiated by senior staff.

Inform suppliers and contractors of the company's policy of prohibiting staff from engaging in corruption or other forms of malpractice.

 

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