S$4.6 Million Fine: Singapore Contractors Caught in Public-Tender Bid-Rigging Scandal

On May 23, 2025, Singapore’s Competition and Consumer Commission (CCCS) imposed a hefty fine of S$4.6 million on construction firms Trust-Build Engineering & Construction and Hunan Fengtian Construction Group. The fines followed a significant investigation into bid-rigging activities related to public-sector tenders worth approximately S$56 million.

Unpacking the Bid-Rigging Scheme

The companies were accused of colluding on three major community club upgrading projects in Bukit Batok, Cheng San, and Eunos, initially tendered in 2022. The scheme involved:

• Bid Coordination: Hunan Fengtian directly prepared Trust-Build’s tender submissions, including detailed pricing proposals.

• Information Sharing: Trust-Build and Hunan Fengtian presented themselves as independent competitors but secretly shared critical bidding information.

Ultimately, the People's Association (PA) disqualified both companies before awarding the contracts, prompting CCCS’s investigation.

Breakdown of the Fines

The CCCS issued severe penalties reflecting the seriousness of the violation:

These fines were calculated based on the gravity of the misconduct, the scale of the affected tenders, and the companies’ financial standings.

Evidence and Investigative Methods

CCCS began investigations in July 2023, conducting raids in November of the same year and formally notifying the companies by October 2024. Key evidence included:

• WhatsApp messages between Trust-Build director Wang Jianjun and Hunan Fengtian’s general manager Xing Hongyun, explicitly detailing bid-rigging plans and strategies.

• Internal communications confirming direct coordination between supposedly competing firms.

Why This Matters for Singapore’s Economy

Bid-rigging artificially inflates costs, wastes public funds, undermines trust in the tendering process, and severely disrupts fair market competition. CCCS CEO Alvin Koh highlighted that such collusion not only impacts taxpayers negatively but also significantly damages the credibility and integrity of Singapore's construction sector.

Understanding Bid-Rigging

Bid-rigging involves companies secretly agreeing to manipulate tenders, effectively removing genuine competition. Common forms include:

• Price fixing: Competitors agreeing on who should win a bid and at what price.

• Bid suppression: Intentionally withdrawing or submitting inflated bids to ensure a particular company wins.

Such practices violate Singapore’s Competition Act, attracting severe financial penalties and reputational harm.

Best Practices to Prevent Bid-Rigging

Companies can minimize risks by:

• Implementing Compliance Programs: Educating employees on anti-collusion and bid transparency.

• Encouraging Whistleblowing: Promoting CCCS’s leniency programs to enable timely reporting of suspicious activities.

• Maintaining Transparent Documentation: Ensuring bid preparation processes are clear, independently verified, and thoroughly documented.

Frequently Asked Questions (FAQs)

Q: What exactly is bid-rigging?
A: Bid-rigging is collusion between supposed competitors in tender processes, illegally manipulating outcomes.

Q: Why did CCCS fine these companies heavily?
A: Because their coordinated actions significantly compromised competitive fairness and wasted public funds.

Q: How can businesses protect themselves against such practices?
A: Businesses should emphasize internal compliance, training, clear documentation, and transparency in all tender-related activities.

The Road Ahead

This landmark enforcement sends a strong message to all industries: Singapore's authorities are vigilant and committed to safeguarding competitive fairness and economic integrity.

Engage and Stay Informed

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