Construction Business Owner –
Most public and some private companies require a competitive public bidding process to choose the best qualified contractors who will provide the lowest prices, the best services, and the most innovative solutions. The competitive process achieves those goals only when companies compete honestly and ethically and agree to the terms up front. Bid rigging disrupts this natural market competition and often results in shoddy work, cut corners and the use of subpar materials.
Bid rigging occurs when subcontractors (subs), who would otherwise have to compete for the job, covertly conspire to raise their prices or reduce the quality of goods or services to win the project. It’s a criminal act, and fraudsters can be investigated and prosecuted if collusion is discovered.
Here are four of the most common bid-rigging schemes.
By: Tiffany Couch