Red Flag: Unreasonable Prequalification Requirements

Unreasonably restrictive pre-qualification 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 such cases corrupt bidders falsify their credentials in order to meet the strict requirements that were used to exclude their competitors.

Also be alert for pre-qualification requirements that are unduly lenient and that 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.