A Model for Detection and Prevention of Unbalanced Bid in the Public Work Procurement Process in India
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Indian Public procurement works contribute almost 30% of the total GDP, most of the large and massively funded projects are public-funded, utilizing the tax collected from the citizens of the country. Hence, any discrepancies associated with such projects have direct implications on the taxpayers. The public procurement process, due to legal bindings and ethics is prone to various malpractices, that affect the overall performance of the system. Hence, it becomes imperative to prevent anomalies associated with the public procurement process. One of the anomalies associated with public procurement is an Unbalanced bid, a method of redistributing the project cost such that it varies from the Engineer’s Estimate. The ethics related to Unbalanced bid varies, contractors state that unbalanced bidding is moral and find its application beneficial to the project performance while clients and officials opine that an unbalanced bid is an unethical practice to jeopardize project progress and client’s money. The unbalanced bid can be of four types – Quantity Error Exploitation, Front-loaded Bid, Back loaded Bid, and Collusive bid. The research intends to propose a model to detect and prevent unbalanced bids respecting the constraints of the public procurement process in India, enhancing project performance, and protecting tax payer’s money.
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