Several bidders may secretly agree to submit complementary bids to allow before the selected contractors to win contracts on a rotating basis, or to divide the contractors to win contracts by territory, or take other measures to beat the competition process and the work is divided.

Collusive tendering, also known as "bid rigging" will raise prices in the industry concerned. It is more common in industries with high start-up and entry costs, relatively few bidders, such as road construction, paving and disposal.

Some form of collusion often accompanies bribery schemes in order to ensure that corrupt company is selected.

The most common scheme is:

Pricing

Price fixing is an agreement by competitors to raise, fix, or maintain the price at which their goods or services sold. It is not necessary that competitors agree to charge exactly the same price, or that every competitor in the industry as participating in the conspiracy. Price fixing can take many forms, and any agreement restricting the prices that restricts price competition violates the law. Other examples of price fixing agreements include those which:

Set or adhere to price discounts.
Stay strong prices.
Eliminate or reduce discounts.
Adopt a standard formula for computing the prices.
Maintain certain price differentials between different types, sizes or quantities of products.
Adhere to minimum fee or price list.
Fix credit terms.
Do not publish prices

In many cases, participants in price-fixing conspiracy also establish some kind of monitoring mechanism to ensure that everyone adheres to the agreement.

How to get bidding information

There are many in online auction information, websites like http://www.tenderserviceonline.com. You can also visit this site for the latest news for competition and entrepreneurship articles.So tender today and get a lot of possibilities business in the government sector.

Dr.Irfan Ahmad is the Chief Editor of http://www.tenderserviceonline.com and CEO Tender Service Pakistan.He has twenty years of experience in providing tender information services to the clients. He has written two books on tendering by the name of “Managing Tender Business” and “Combating Procurement Frauds”

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