Abuse of Bidding Process and Corruption in the Engineering, Procurement and Construction (EPC) Contracts: A Way Forward

Abstract

The research paper majorly analyses the EPC Contracts in the Oil and Gas sector in India. Construction of oil and gas facilities consume substantial time and costs, and EPC Contract is one of the models used by the Owner for the development of the same. There are inbuilt provisions in the tender documents to ensure transparency and fairness in the tendering process. However, there is a possibility of misuse or abuse of the discretionary power by the employees to favour a bidder to the detriment of public interest. The paper first identifies the various possible means through which public officials and bidders try to circumvent the law and contract to gain business, unlawfully. Then subsequently the measures taken in tender documents to curb corruption and ensure the efficacy of the EPC Contract in the prevention and detection of the corrupt practices are analysed. The authors try to identify and analyse the provisions in the contract that build public trust and enhances public participation in the government tender process. The role of judiciary in the prevention of corrupt practises, creation of a level playing field for all bidders and encouraging competitiveness by ensuring fairness and reasonableness in the government dealings is also discussed in this research paper. The paper concludes with recommendations to bring more transparency and equitability in the tender process.