Developing Contractor Compliance System in Bhutan

Abstract

Rise in public procurement corruption in Bhutan is a big concern. This paper would therefore attempt to address the above focusing on one major offence viz. bid rigging by Bhutanese construction firms primarily through development of effective contractor compliance systems.The paper will review the existing legal frameworks, initiatives taken by RGoB and concerned agencies to establish compliance standards and procedures for private construction firms in the country and examine emerging international models for compliance systems and compare them with Bhutan’s initiatives. Further, the paper will recommend how international red flags for bid rigging could be incorporated into compliance systems and use sanctions to encourage self cleaning by construction firms. In addition to all the foregoing, the paper will attempt to address emerging trends of bid rigging in Bhutan by recommending key stakeholders the need to frame a standard Contractor Compliance Guideline.