Understanding collusive practices in Chinese construction projects

Abstract

Collusion is of critical concern to the construction sector as it undermines free competition in the construction market. Given that previous research on collusive practices concentrates mainly on the bidding phase, this study extended the research focus to the entire construction period and aimed to investigate specific collusive practices in Chinese construction projects. A total of 22 specific collusive practices in Chinese construction projects were first identified based on a comprehensive literature review and a Delphi survey with 15 industry experts. Then, a questionnaire survey was conducted to prioritize the identified collusive practices in terms of their probability and severity. The survey results indicate that the primary collusive practices in Chinese construction projects are misrepresentation of qualification certificates, loose site supervision, misusing prequalification requirements, fake tendering, approval of the unnecessary change orders, collective collusive tendering by helping one another, the nomination of a particular supplier, issuing certified works falsely, and inflating tender price. The findings of the study not only provide a clearer picture of collusive practices in construction projects in China but also provide a better understanding of collusive practices in other emerging economies.