Towards secure and legal e-tendering

Abstract

Tendering processes are considered to be a suitable mechanism for governments to fairly assign contracts for construction projects and procurement. The demand for efficiencies to be created in the process has resulted in a significant number of governments implementing e-tendering systems. E-tendering systems generally involve the submission of tender offer documents to a secure system hosted by the government (principal). An electronic environment presents obvious opportunities for collusion between principal and certain tenderers, fraud by tenderers and a minefield of legal uncertainties for fuelling protracted disputes. Critical examination of the security and legal requirements for e-tendering systems does not appear in the current literature. This paper identifies key security and legal issues to be addressed in the design of e-tendering systems, which may be included in e-procurement software, and proposes a new e-tendering architecture, using distributed trusted third parties which may be suitable for secure large scale operations such as the construction industry.