What does bid rigging mean in bidding

Bid-rigging, also known as collusive bidding, refers to the means and behavior of several bidders agreeing with each other to unanimously raise or lower the bid, and to make a stakeholder win the bid by restricting competition and crowding out other bidders, so as to seek benefits. The initiator of bid-rigging is called the bid-rigger, and the bidder who participates in the bid-rigging is called the bidder.

Bid-rigging is the result of the development of the immature construction bidding market to a certain stage. Bid-rigging members reach an offensive and defensive alliance, and usually accompany the bidder to strictly abide by the requirements of the cooperation agreement between the two parties during the whole bid-rigging process to ensure that the bid-rigging person can win the bid smoothly, and keep the whole process of the bid-rigging activity confidential.

Collusion, refers to the bidding units or the bidding unit and the tendering unit collude with each other to defraud the winning bid, collusion is a speculative behavior, the root cause of which is the lack of integrity in the field of engineering construction and even the whole society. Due to the integrity of enterprises, enterprises and the public, all kinds of bad and illegal behaviors in engineering construction are not uncommon, and collusion is only one of them.

For the same project, different bidders use the same computer to produce and generate electronic bids.

If the subject document is deemed to be the same as the machine code of the document production; Different bidders use the same bidding documents.

If the process draft is made and the electronic bidding documents are generated, it shall be deemed that the document creation identification code is consistent; Different.

If the bidder uses the same cost lock to make and generate electronic bidding documents, it shall be regarded as a file encryption lock.

number is consistent. The above three situations, once discovered, will be deemed to be the bidders colluding with each other, which will lead to the rejection of the bidding and will be treated as collusive bidding.

According to the Regulations for the Implementation of the Tendering and Bidding Law of the People's Republic of China:

Article 39 bidders are prohibited from colluding with each other in bidding.

In any of the following circumstances, it is a collusive bidding between bidders:

A) the bidders negotiate the substantive content of the bidding documents such as bidding;

2) The bidders agree on the winning bidder;

3) The bidders agree that some bidders give up the bid or win the bid;

4) Bidders who are members of the same group, association, chamber of commerce and other organizations shall bid collaboratively in accordance with the requirements of the organization;

5) Other joint actions taken between bidders to seek to win the bid or exclude specific bidders. ”

Bid-rigging is a type of bid-rigging.

Bid-rigging is a professional term for bidding and bidding, also known as collusive bidding, which refers to the means and behavior of several bidders agreeing with each other to unanimously raise or lower the bidding **, by restricting competition, crowding out other bidders, and making a certain stakeholder win the bid, so as to seek benefits.

Manifestations of bid-rigging.

1. Collusion between tenderers and bidders. The main superficial forms are: the implementation of fair competition to squeeze out competitors

Before the public opening of the tender, the tenderer shall open the tender and inform other bidders of the bidding situation, or assist the bidder to withdraw the tender and replace the tender; The tenderer leaks the bottom of the bid to the bidder; The bidder and the tenderer agree to lower or raise the bid price during the bidding, and then give the bidder or the tenderer additional compensation after winning the bid; The tenderer pre-determines the winning bidder, and decides the trade-off when determining the winning bidder.

2. Collusion between bidders. The main surface forms are: bidders agree with each other to unanimously raise or lower the bid; Bidders agree with each other to take turns to win the bid at the best or low price in the bidding project; Bidders first conduct internal bidding among themselves, determine the winning bidder, and then participate in the bidding.

They all take different forms. This kind of unfair competition is to squeeze out other competitors through unfair means, so as to achieve the purpose of making a certain stakeholder win the bid, so as to seek benefits.

Bid-rigging usually refers to the mutual agreement of several bidders to increase or lower the bidding in order to seek non-illegal benefits by restricting competition, excluding other bidders, and allowing specific stakeholders to increase or lower the bidding **, which is an illegal act of horizontal association between bidders.

Collusion usually refers to the vertical joint illegal conduct of the criminal entity to achieve the goal of illegal interests by formulating tendentious bidding documents in advance, leaking or naming the bidder's bid evaluation, or even deliberately incorrectly scoring the bidder's score.

Both bid-rigging and bid-rigging are black-box operations as the main means for the purpose of seeking illegal profits, which has caused great harm to the bidding system. In contrast, the main feature of bid-rigging is the horizontal association between bidders, which is relatively simple, relatively small in scale and easy to prevent. Collusion is a vertical joint and three-dimensional criminal method between many bidding entities, which involves a wide range of areas and relatively complex management.

ToCheck optimizes the algorithm for bidding and provides text error correction functions to prevent users from discovering suspected plagiarism, plagiarism, collusion and bid-rigging, etc., to help enterprises avoid risks.

What is bid-rigging? Bid-rigging, also known as collusive bidding, refers to the means and behaviors of several construction unit bidders agreeing with each other to unanimously raise or lower the bidding **, by restricting competition, crowding out other bidders, and making a certain stakeholder win the bid, so as to seek benefits.

1. What are the consequences of bid-rigging?

1. Disrupting the order of China's construction market and evading the supervision of the competent authorities. It is easy to breed corruption. In the process of project bidding, bid-rigging is used to win the bid, which is more difficult to detect and more concealed than other illegal acts such as malicious price reduction and bribery.

Sometimes, even if it is discovered, the tenderer and the bidding management department cannot find an effective way to sanction their cheating, because at present, China's bidding-related laws and regulations do not stipulate what circumstances are included in bid-rigging and how to determine bid-rigging; At present, only some irregularities have been cited as collusive bidding behaviors.

2. Bid-rigging directly harms the legitimate rights and interests of other bidders. The phenomenon of bid-rigging is essentially a disorderly and malicious competition caused by extremely fierce market competition, which will inevitably make the bid-winning results manipulate to a large extent in the hands of a few construction enterprises, and the potential bidders who have the advantage and strength to win the bid are blocked out. It will not only destroy the normal management and integrity environment of the market, seriously affect the fairness and seriousness of bidding and bidding, but also harm the interests of most bidders and hinder the progress of society.

3. When there is no bid bottom or composite bid bottom bidding and the lowest price is not taken to win the bid, bid-rigging will often lead to the winning bid price exceeding the normal range, thereby increasing the cost of the tenderer. Because the construction units involved in bid-rigging will generally have some form of profit sharing, this will cause them to manipulate the bid price beyond the reasonable low price range.

4. The integrity of the enterprises involved in bid-rigging is not high, and the quality of the enterprises themselves is poor. Due to the gambling psychology prevails, most of the bidding documents prepared by enterprises focus only on the first, do not carefully study the construction plan, and have no reasonable countermeasures. Even if the bid is won, it is unlikely that the project implementation will be seriously organized, which will leave hidden dangers for the project itself.

<> subject matter of bidding and bidding refers to the object to which the rights and obligations of both the tenderer and the bidder are directed. For the tenderer, it is the object of procurement; For the bidder, it is the object of sale. Judging from the practice of domestic and international bidding and bidding, the subject matter of bidding and bidding should include three categories: goods, projects and services.

1.Goods. Goods refer to substances that have a certain material form, occupy a certain space, have a certain value and use value, and are used for trading.

Goods are classified differently from different perspectives: means of subsistence and means of production; kinds of things and specific things; original and fruits; movable and immovable property, etc. Real estate as goods, unlike construction, refers to construction products that have become finished products.

The bidding system originated from the bidding of goods, and to this day, goods are still the main subject of bidding. 2.Engineering.

Engineering refers to the work carried out by civil engineering and construction or other production and manufacturing departments with relatively large and complex equipment, such as civil engineering, mechanical engineering, chemical engineering, etc., therefore, the engineering referred to in the construction field only refers to two types of projects: construction engineering and installation engineering, but construction is mainly used with town. In China, the expenditure of engineering construction accounts for a very large proportion of the total expenditure, and in the practice of bidding and bidding in China, travel transportation is also the most common implementation of project bidding. 3.

Serve. The understanding of services varies greatly from country to country and from one international agency to another. For example, the World Bank and the Asian Development Bank include consulting (including design and supervision) in the scope of their services, while the Tendering and Bidding Law stipulates that bidding for construction projects includes survey, design and supervision.

Bid-rigging refers to the act of several bidders agreeing with each other to unanimously raise or lower the bidding **.

Bid-rigging is a technical term for tendering and bidding, also known as collusive bidding. , by restricting competition, crowding out other bidders, so that a certain stakeholder wins the bid, so as to seek benefits. The initiator of bid-rigging is called the bid-rigger, and the person who participates in the bid-rigging is called the bidder.

Bid-rigging is an immature construction bidding market to a certain stage of development, bid-rigging members reach an offensive and defensive alliance, usually throughout the bid-rigging process to accompany the bidder to strictly abide by the requirements of the cooperation agreement between the two parties to ensure that the bidder can successfully win the bid, and the whole process of bid-rigging activities to keep confidential.

Consequences of private bid-rigging:

1. Disrupting the market order and evading the supervision of the competent authorities. It is easy to breed corruption. In the bidding process, bid-rigging is used to win the bid, which is more difficult to detect and more concealed than other illegal acts such as malicious price reduction and bribery.

2. Bid-rigging directly harms the legitimate rights and interests of other bidders, and the phenomenon of disturbing bids is essentially a disorderly and malicious competition caused by extremely fierce market competition, which will inevitably make the bid-winning results manipulate to a large extent in the hands of a few enterprises, and make the potential bidders who have unprecedented advantages and strength to win the bid are blocked out.