Collusion, bid-rigging can generally be summarized as two situations:
(a) bidding unit and bidding unit collusion
Bidding unit to operate privately, the use of a variety of means to do the work, the bidding unit in the bidding process has not entered the intention of the winning unit has been selected, and then enter the physical construction market to go through the motions, so that the bidding system in a mere formality. Some enterprises in search of business to invest a lot of power, in order to obtain the construction unit of the private commitment, what tricks are used, liaison, socializing, the result is bound to be a waste of a lot of human, material and financial resources.
(ii) collusion between the bidders
The bidders in the bidding before the agreement by which one of the bid, the other to accompany the bidding, and then by the winning party to accompany the bidding party to a certain percentage or a certain amount of "reasonable profit" as a reward. Generally speaking, the agreement of the parties to the agreement with a certain degree of long-term contract nature, and once formed, this form will become recognized as "unspoken rules".
The concept of "bid-rigging" is typical. What is a companion bid? A public **** management agencies or public enterprises for the bidding unit, A has been privately discussed with the agency or unit at what price (through corruption to form a low price) to take away the resources or projects, but the state law requires bidding for concessions, contracting. This is difficult to defeat them, arranging B, C, D several businessmen who do not really bid, to false bidding. At the same time, deliberately in the bidding information sent, time schedule and other aspects of the public (including the real willingness, may participate in the bidding business) can not know, difficult to participate in the design. In this way, A and accompanied by bidding B, C, D constitute a form of multiple bidding subjects, so that the bidding activities have a legitimate coat. Of course, accompanying the bidder is not in vain, A not only to bear their participation in false bidding costs, but also to pay them a certain number of points or a proportion of the honorarium. Points or proportion, and even have become the rules of the trade
In January 1, 2000 came into force of the "Bidding and Tendering Law," for example, the law's Article 53 provides that: bidders collude with each other to bid or bidding collusion with the bidders, bidders to the bidders or members of the bidding committee bribes to win the bidding, the bid is invalidated, and impose a fine of more than five thousandths of one thousandths of the winning amount of the project ten or less; If there is any illegal income, the bidder shall also be sentenced to a certain amount of illegal income; if the circumstances are serious, the bidder shall be disqualified from participating in the bidding of projects that are subject to bidding for a period of one year to two years, and the bidding qualification shall be announced, or the business license shall be revoked by the administrative organ for industry and commerce; if the case constitutes a crime, the bidder shall be held criminally liable. Anyone who causes damage to others shall be held liable for compensation in accordance with the law. Further Article 223 of the Criminal Law: Where bidders collude with each other on bidding offers, to the detriment of the bidder or other bidders, and the circumstances are serious, they shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall be liable to a fine in addition to or in addition to a single fine. Bidders and bidders collusion bidding, damage to the legitimate rights and interests of the state, the collective, citizens, in accordance with the preceding paragraph shall be punished.
Only from these entities to analyze the legal norms, will find: collusive bidding is a legal risk is very low, there is a big benefit. Collusion in bidding, bribery of bid evaluators, if found, only a fine of less than 1% of the money; more serious cases, only canceled one or two years to participate in the bidding qualification. Even if it is serious enough to constitute a crime, it is only a prison sentence of less than 3 years or detention. 3 years of imprisonment, it is possible to suspend the sentence, may not be detained, can continue to do business. In China's more developed areas of the theft of 1,000 yuan, belongs to the "larger amount" of a grade, constituting the crime of theft, but also less than 3 years of imprisonment or detention. In comparison, collusion in bidding is how "cost-effective"! Moreover, even if you do, it is very difficult to detect, such as bribery and adultery. From the procedural norms and implementation mechanisms, even very minor legal responsibility is also very difficult to realize. Check how many such cases have been published to judge.
No need to use what economic analysis of legal theory, no need to use what "benefit (cost-benefit) analysis" principle of attribution of responsibility, and even do not need to study the relevant facts, only from the norms themselves can be judged, the current system has serious flaws.