What is collusive tendering?

Collusive tendering refers to when two or more competitors cooperate to undermine the competitive tendering process in order to gain an unfair advantage.

A code covered entity must not engage in collusive tendering practices.

Collusive tendering practices include:

  • any agreement between tenderers as to who should be the successful tenderer
  • any meetings of tenderers to discuss tenders before the submission of tenders if the client is not present
  • any exchange of information between tenderers for the payment of money or the securing of a reward or benefit for unsuccessful tenderers by the successful tenderer/s
  • any agreements between tenderers to fix prices or conditions of contract (price fixing is any collaboration between tenderers on prices or conditions to be included in contracts without the consent of the client)
  • any assistance to any tenderer to submit a cover tender (a cover tender is a tender submitted as genuine, which has been deliberately priced in order to not win the contract)
  • any agreement between tenderers before submission of tenders to fix the rate of payment of building association fees, where the payment of such fees is conditional on the tenderer being awarded the contract.

What is not collusive tendering?

Legitimate practices or arrangements such as joint ventures or alliance partnering are not collusive tendering practices.

Where can I learn more about anti-competitive behaviour?

To learn more about anti-competitive behaviour in the building and construction industry, please visit the Australian Competition and Consumer Commission.