Red Flags Listed by Project Cycle

Click on a red flag listed in the left column to learn about the red flag and match it to a potential scheme or schemes. Click on a scheme in the right column to see a description of the scheme, a complete list of the red flags for that scheme and suggested follow up steps to see if the scheme is in fact present.

Red Flags

Related Schemes

Procurement Planning Stage
Manipulation of Procurement Thresholds Unjustified Sole Source Awards, Corruption
Purchase of Unnecessary or Inappropriate Items Corruption
Prequalification and Short Listing
Inappropriate Evaluation Criteria or Procedures Manipulation of Bids, Excluding Qualified Bidders, Corruption
Unreasonable Prequalification Requirements Excluding Qualified Bidders, Corruption
Bidding Documents
Vague, Ambiguous or Incomplete Contract Specifications Unbalanced Bidding, Corruption
Contract Specifications Too Narrow or Too Broad Rigged Specifications, Excluding Qualified Bidders, Corruption
Failure to Make Bidding Documents Available to All Bidders Excluding Qualified Bidders, Corruption
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Short or Inadequate Notice to Bidders Excluding Qualified Bidders, Corruption
Bidding
Complaints from Losing or Excluded Bidders Corruption, Bid Rigging, Collusive Bidding
Unusual Bidding Patterns Collusive Bidding
Similarity in Bids; Apparent Connections Between Bidders Collusive Bidding
Bidders Not Listed in Business or Telephone Directories or Internet Hidden Interests, Collusive Bidding
Too Many Contract Awards to the Same Company Corruption, Collusive Bidding
Qualified Companies Fail to Bid Excluding Qualified Bidders, Collusive Bidding, Corruption
Rotation of Winning Bidders Collusive Bidding
Unreasonably High Line Item Bids Collusive Bidding, Unbalanced Bidding
Unreasonably Low Line Item Bids Unbalanced Bidding, Corruption
Use of Questionable Agent, Consultant or Subcontractor Corruption
Bid Opening
Non-Transparent Bid-Opening Procedures Manipulation of Bids, Excluding Qualified Bidders, Corruption
Bid Evaluation
Award to Other Than the Lowest Qualified Bidder Manipulation of Bids, Corruption
Poorly Supported Disqualifications Excluding Qualified Bidders, Corruption
Pressure to Select a Certain Contractor, Subcontractor or Agent Corruption
Winning Bid is Very Close to Budget or Cost Estimates Unbalanced Bidding, Corruption
Contract Awards
Multiple Contract Awards Just Under Procurement Thresholds Split Purchases, Unjustified Sole Source Awards, Corruption
Long Unexplained Delays in Contract Negotiations or Awards Manipulation of Bids, Corruption
Contract Implementation
Complaints Regarding Poor Quality Goods, Work or Service Product Substitution, Failure to Meet Contract Specs, Corruption
Continued Acceptance of Poor Quality Goods, Work or Service Corruption
Delivery of Poor Quality Goods, Work or Service Failure to Meet Contract Specs, Product Substitution
Contract Changes
Questionable Contract Amendments (“Change Orders”) Change Order Abuse, Corruption
Payment
Questionable Invoices False, Inflated or Duplicate Invoices, Fictitious Contractor, Corruption
Payment of Unjustified High Prices False, Inflated or Duplicate Invoices, Failure to Meet Contract Specs, Corruption
Incomplete, Questionable Payment Documentation False, Inflated or Duplicate Invoices, Failure to Meet Contract Specs, Product Substitution, False Statements and Claims
Also See:
The “Visible Red Flags” of Implementation Fraud
How to Conduct Automated “Proactive” Tests for Red Flags of Fraud