Wake Up from the Dream of Competitive Bidding

A Korean manufacturing company recently announced that it would conduct all of its business transactions through competitive bidding. This was an indication of its determination to prevent any unjust solicitation or external influence in business transactions. However, although competitive bidding ensures a degree of transparency, it is not necessarily beneficial to both project owner and contractor. Bidders may be unfaithful or fail to fulfill their obligations, and there is risk of illegal collusion among bidders or the selected contractor using cheaper materials than what is proposed. In low-price competition, in particular, contractors may compromise their work quality to squeeze out profits.

(Full article only available in Korean)