Home » Uncategorized » Public tenders should not be a potential crisis factor

Public tenders should not be a potential crisis factor

Public tenders have been issued by government organizations to take benefit of so called “market workings” or, in reality: dive under any reasonable price to get the order and try to adjust later. What government really does by chosing mainly on price is to introduce speculative and potentially dangerous behavior in entrepreneurship. A common practice is to find ways to get the cheapest entry knwoing that this will get the deal. A bribe or just undercutting by planning inappropiate material usage or hiring very cheap, unskilled labor forces, whatever will do the trick.

Often we find that school or city busses are not maintained correctly, truck drivers make too long hours, balconies collaps due to wrong cementation, roads are rained away because some “forgot” to put an expensive substance into the tarmac. It all seems to go well for a while until a bridge collapses, a bus collides, a plane crashes or a building falls over. Many death, years of investigation and all the cover ups to avoid pinpointing the real causes. Just like the banks did for many years until it all blows up into our face.

Public tendersneed to include the three basis world agreements:

  1. Continuous iImprovement if health and vitality of the human being
  2. Minimization of usage of critical resources
  3. The company needs to present itself as a true added value for society

With those three statements as framework within which any tender has to be executed the government takes responsibility to sustainability in all its projects. If a company tenders it should first comply with this before the actual proposition is taken into account. Price is not the main determination factor but the measurable added value for society is. Like that government will protect its long term interests and companies will learn to behave with ethics and moral, competing for wealth creatin rather than self interests.

Interestingly we have been able to show that ethical behavior according to multidimensional principles does not at all make products more expensive or companies less profitable, on the contrary. The fact that responsible behavior is shown in the proposals but all in the commitment and execution those companies tend to be highly desired. Their quality of work reduces risks and hence liabilities that reduces insurance costs, pressure of regulation, etc. And that is in the interest of all of us.

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