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Case Study Appointing Consultants and Contractors
Raymond is the OC Secretary of the building he lives. The OC needs to hire a project consultant and a building contractor to carry out the project of removing loose or defective external rendering from the building and replacing damaged fresh water pipes. Raymond seeks advice from his father-in-law, Tung, who is the proprietor of a construction company. Tung highly recommends a consultant called Ken, with whom he is familiar. Ken is even willing to reduce the consultation fee to $180,000 to save the OC the "trouble" of having to conduct an open tender exercise. Ken's firm eventually gets the contract.
 
In the subsequent tendering procedure to select a contractor for the works, Ken and Tung conspire to rig the process by submitting tenders from five different companies in order to manipulate the result and enable Tung to win the tender with the "lowest" bid. 
 
However, a sixth company unexpectedly submits an even lower bid.  Ken then tries to slip in a late tender to beat that lower one.  When that fails, Ken plays on the lack of professional knowledge of the MC members and uses jargon to discredit the lowest tenderer.  He even suggests that the OC negotiates the price, through Raymond, with Tung's company, recommending this as a way of avoiding criticism by owners.  Tung accordingly reduces the contract price by cancelling "optional" works and successfully obtains the contract.  Raymond throughout this process does not disclose his relationship with Tung but he is kept in the dark about Ken and Tung's fraudulent behaviour.
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Names of all characters, locations and incidents portrayed in this case study are entirely fictitious. No relation to any real person or entities is intended or should be inferred.