Collusive Tendering Damages Construction ServicesBusiness Competition

Abstract

Collusion in the construction services industry has proven to be detrimental to business competition. Collusive practices in the tender process hinder fair competition and result in significant economic losses. Companies involved in such collusion cooperate to manipulate bidding prices, avoid genuine competition, and influence tender outcomes to their advantage. As a consequence, companies not engaged in the collusion lose opportunities to secure contracts, while project costs escalate. Collusive tendering also has negative impacts on the quality of construction work. When companies collude to win tenders, they may disregard necessary quality and safety standards. This can lead to lower quality, unsafe projects, and increased infrastructure failure risks.