Red Flag: Unreasonable Prequalification Requirements

Unreasonably restrictive prequalification requirements, such as setting unduly high prior experience or annual financial turnover requirements, can be used to limit competition and facilitate the selection of a favored bidder, often as the result of corruption.

In many corruption cases that involve unreasonable prequalification requirements, corrupt bidders falsify their credentials in order to meet the strict requirements that were used to exclude their competitors.

Also be alert for prequalification requirements that are unduly lenient and which permit unqualified companies to participate.

This red flag can indicate the following schemes:

Click on the schemes listed above to see more information on each scheme, a more complete listing of their red flags and steps to determine if the schemes are actually present.