cover bidding

(redirected from cover pricing)

cover bidding

or

cover pricing

n
the act of tendering an artificially high price for a contract, on the assumption that the tender will not be accepted
References in periodicals archive ?
It argued the incidences took place before 'cover pricing' was established as an anti-competitive practice by the Competition Appeal Tribunal.
The scam, known as "cover pricing", involved secretly agreeing quotes before bidding for projects.
The OFT said most of the offences involved socalled cover pricing, where one or more bidders arranges for competitors to put down high bids.
Local Government Association chairman Margaret Eaton said: "There are simply no excuses for collusion or cover pricing, which leaves the public and councils to pick up the tab.
FHM is listed in the OFT's findings as being "engaged in cover pricing" in relation to the project, along with competitors Connaught and Mansell.
Frank Haslam Milan North-east, another local firm named by the OFT, is being investigated along with parent company Keepmoat, which admitted that the company had been involved in cover pricing, but not to influence the outcome of tenders "or receive any financial gain".
The OFT's allegations, put forward in a formal statement of objection, centre on "cover pricing".
Most of the offences involved so-called cover pricing, where one or more bidders arrange for competitors to put down high bids.
The OFT said it had found 199 tenders dating from 2000 to 2006 where bid-rigging took place, mostly in the form of so-called cover pricing, where one or more bidders arranges for competitors to put down high bids so as not to win the contract but to increase the appearance of competition.
This was mostly in the form of "cover pricing" - where one or more bidders arranges for competitors to put down high bids so as not to win the contract, but to increase the appearance of competition.
The OFT's allegations, put forward yesterday in a formal statement of objection, centre on "cover pricing".