The Formation of Construction Bid-Rigging: An Analysis Based on the Theory of Planned Behavior

Xing, Jinding; Ye, Kunhui; Zhu, Wenhui; Tang, Pingbo

doi:10.1061/9780784482889.132

Cited by 3 publications

(1 citation statement)

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“…Furthermore, it was found that bidding alliances established by clients, bidders, and agents was a major cause of the accident of the Shanghai November 15 fire in 2010 [19]. China has evidence that thousands of unqualified bidders crowding the construction market can cause severe industrial problems, such as poor project quality, extensive market disorder, and malfunction of resource allocation [20]. Hence, the increase in collusive bidding nationwide calls for methods to properly recognize collusive bidding's form and characteristics.…”

Section: Introductionmentioning

confidence: 99%

A Social Network-Based Examination on Bid Riggers’ Relationships in the Construction Industry: A Case Study of China

Xiao

Zhou

et al. 2021

Buildings

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Collusive bidding has been an insidious issue in the construction industry. Bidders initiate collusive networks of various sizes to win market shares. The popularity of collusive bidding networks affects market fairness and erodes the interests of market players. Although considerable research efforts were made to diagnose collusive bidding networks, there remains a gap in knowledge regarding the relationships bid riggers use to engage in the networks. Therefore, this study used the social network method, where two hundred sixteen collusion cases were collected from China to test these relationships. The results show that collusive bidding networks were characterized by sparseness, a small scale, a high concentration, and strong randomness. Three types of collusive bidding networks were also detected: contractual, spontaneous, and shadow. Furthermore, these collusive bidding networks had discrepancies regarding participants’ identities, forms of collusive bids, and the determination of bid winners. It was found that the proposed social network model of deliberating bid riggers’ relationships lays a solid foundation for the detection of collusive bidding in the construction sector.

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Section: Introductionmentioning

confidence: 99%