Module 5: Preventing corruption in project procurement
Tender conditions / contract with bidder
Ensure that the tender conditions (for all bidders), and the contract (with the winning bidder) contain:
Anti-corruption commitment: A commitment from the bidder that it has not and will not participate in any bribery, fraud, cartel or other type of corrupt conduct in relation to the tender, contract or project (to alert bidder, and to enable recourse)
Accuracy of information: A commitment from the bidder that it will take all reasonable steps to ensure that all information it provides in its tender and during the project will be accurate and true (to help ensure accuracy of disclosure and to permit recourse). E.g.:
experience, CVs, accounts, equipment lists
claims for payment, variations and extensions of time.
Disqualification / termination: The right to disqualify the bidder during tender, and/or terminate the contract and obtain damages, in the event of breach of these commitments by the bidder (to enable recourse).
Variations etc: Adequate controls over issuing and calculation of variations, extensions of time and liquidated damages (to ensure that illicit profits cannot be made from these circumstances during construction phase). E.g:
clear and fair circumstances when variations etc can be issued
control over who can issue
clear and fair evaluations and calculation methodology
right to challenge and correct unfair or incorrect evaluations and calculations
monitoring and sample auditing of these areas to identify possible corruption.
Rate adjustment: The ability to adjust any specified unit rates in the event of a material change to quantities (to ensure that illicit or windfall profits cannot be made in this event). E.g:
upward or downward adjustment to rate in the event of a change to quantities in excess of [15%].
clear and fair valuation parameters for the adjustment
right to challenge and correct unfair adjustments
monitoring and sample auditing of rate adjustments to identify possible corruption.