For any project that an Engineering company wants to design, they first must partake in the primary bid. Multiple Engineering firms can be apart of any bid. It's much the same as an auction. This practice is also used by other industries such as Construction and Architecture. For example, if Target wants to build a new headquarters, they will have a general idea on how many square feet, how tall and the quality of the building that they want. Any Architecture firm who is interested will request the specifications that Target wants. Each firm will then estimate the cost for them to design the headquarters and then place those prices on bid day. Target will choose which offer they like best, while also considering past projects that the Architecture firm has designed. The winning Architecture firm then designs the building and passes those drawings on to Construction and Engineering companies, where a similar bid process will happen.
What is Bid Rigging:
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| Bid Rigging is Illegal in the United States |
As I have stated before, bid rigging breaks every code of ethics in all industries. The fourth canon of the Engineering Code of Ethics states that Engineers shall act for each employer or client as faithful agents or trustees. The fifth canon says to avoid deceptive acts and the sixth states for Engineers to conduct themselves honorably, responsibly, ethically and lawfully to enhance honor and reputation. In all, Engineers are supposed to do what's best for themselves and their company while abiding by the rules truthfully. Bid rigging cheats the system and breaks the Code of Ethics. In some cases, companies who have been caught bid rigging aren't allowed to partake in any other projects in the state that they were caught in. The three construction companies that were caught in Texas are never allowed to construct anything in Texas every again and even some Engineers lost their licenses. Some companies have even gone out of business due to the fines against them. Should bid rigging be allowed? No! In other countries, like Japan, bid rigging is used for nearly every job. They bribe customers into choosing them and also fix the bids. This can be a good thing for larger companies who can offer more. But smaller companies and also United States companies have no chance of winning any bid because they can't bribe the customers with anything. Kiewit Engineering is a construction company that dominates North America. But they refuse to partake in any projects in other continents because they simply cannot keep up with other foreign companies bribes.
The Future of Bidding:
In a world that is becoming more politically correct everyday, I believe it will be a thing of the past. 20 years ago, it was common for every company to rig bids, even in the United States. Whenever companies bid on projects, it is very competitive and everyone wants to win. But breaking the law and moral ethics is taking it too far. I believe that the current consequences for bid rigging are just right in the United States and I hope that someday there will be a uniform law throughout the world. Although the punishments may seem like a slap on the wrist to most companies, it sends a message to all.







