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Guide to Combating Corruption & Fraud in Infrastructure Development Projects

  • Detection
    • Complaints
      • General initial interview questions
      • How to Generate Complaints and Reports
      • List of fraud reporting sites for Multilateral Development Banks
    • Red Flags
      • Red Flags Listed by Project Cycle
      • “Visible red flags” of Implementation Fraud
      • Proactive Fraud Detection Tests
    • Due Diligence
      • “Top Five” Due Diligence Background Checks
      • Free and Subscription Internet Sites
      • Local and On-Site Due Diligence Checks
      • Due Diligence Service Providers
  • Proof
    • Proving Common Schemes
      • Corruption Schemes
      • Bid Rigging Schemes
      • Collusive Bidding Schemes
      • Fraud Schemes
      • The Basic Steps of a Complex Fraud and Corruption Investigation
    • Elements of Proof for Sanctionable Offenses
      • Elements of Proof of Corrupt Practices
      • Elements of Proof of Obstructive Practices
      • Elements of Proof of Coercive Practices
      • Elements of Proof of Collusive Practices
      • Elements of Proof of Fraudulent Practices
  • Evidence
    • The Basics of Evidence for Investigators
  • Prevention
    • Anti-fraud Resources
Home » Detection » Red Flags of Corruption, Bid Rigging and Other Schemes » Red Flag: Unreasonably Low Line Item Bids

Red Flag: Unreasonably Low Line Item Bids

An unreasonably low line item bid can indicate an unbalanced bidding scheme, probably as the result of corruption.

For example, project officials can leak inside information to a favored bidder that certain line items in the request for bids will not be called for after contract award.  This allows the favored bidder to “low ball” that item in order to reduce its overall bid price and unfairly eliminate competitors.

This red flag can indicate the following schemes:

  • Unbalanced bidding
  • Corruption

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.

Category: Red Flags of Corruption, Bid Rigging and Other Schemes

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