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
Improper 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 Specs	Unbalanced Bidding, Corruption
Contract Specifications Too Narrow or Too Broad	Rigged Specifications, Excluding Qualified Bidders, Corruption
Failure to Make Bidding Documents Available	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
Physical Similarities in Bids	Collusive Bidding
Bidder Not in Directories or on Internet	Hidden Interests, Collusive Bidding
Too Many Contract Awards to One 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
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 Certain Contractor, Sub or Agent	Corruption
Winning Bid Very Close to Cost Estimates	Unbalanced Bidding, Corruption
Contract Awards
Contract Awards Just Under Procurement Thresholds	Split Purchases, Unjustified Sole Source Awards, Corruption
Long Delays in Contract Negotiations or Awards	Manipulation of Bids, Corruption
Contract Implementation
Complaints re Poor Quality Goods, etc.	Product Substitution, Failure to Meet Contract Specs, Corruption
Acceptance of Poor Quality Goods, etc.	Corruption
Delivery of Poor Quality Goods, etc.	Failure to Meet Contract Specs, Product Substitution
Contract Changes
Questionable 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