Corrupt Engineering Firm 2

[BobPE]

I am wondering what those people who use the services of engineering firms think about this.

In my job I compete regularly with other consulting firms to get projects here in the US. I have had the opportunity to go up against many good firms. I have also had the opportunity to go up against some not so good firms. I recently lost a project to a smaller firm that was charged with giving bribes and was banned for a period of several years from performing engineering services in various states. This is not common knowledge amoung users of engineering services that the firm has been punished for their activities. They have expanded their market territory to "grow the company" which is code for the fact that they wore out their welcome where their main office is located. I am seeing the same MO for their operations around my main office now. We were more qualified and equal price on a bid, the selection committee was in favor of us, but there was a ruling vote that came from a political position. Our loss was because of that vote ande this questionably ethical firm got the project.

I was wondering two things:

How would you members feel that regularly use engineering services about getting a firm that paid for your work, but the payment had nothing to do with improving your project?

The second thing for other consulting members is what would you say to cleints when you know this firm is bidding and that the client has no clue about the past publically documented antics of the firm?

I am just curious to understand how people perceive consulting firms. From what I see in here it seems that consulting firms are their own worst enemy and from the antics that I described its no wonder why.

BobPE

 

[Focht3]

You are dealing with a difficult problem - assuming that your allegation of bribery is correct. There is no easy answer - but I'd avoid getting involved personally unless you have real proof.

A couple of ideas - giving you the benefit of the doubt -

1. Contact the FBI. It's bribery - across state lines...
2. Contact your local newspaper anonymously. Send them the various newspaper clippings.
3. Ditto for the most aggressive TV station in town.

In my experience, 3. has the best chance for success. After all, what cockroach wants to see their mug on the 10 PM news?

If none of these pan out, then you will have to wait until 1) you get hard evidence, 2) someone catches them red-handed, or 3) the marketplace sorts it out (which can take awhile.)

 

[ICman]

Most of the time, you learn about corruption thru government projects vs. those in private companies. No company will admit it took a bribe, and ethical companies will quietly remove the briber(?) from their bid list.

It's difficult for you to point fingers at your competition. You either have to rely on your good reputation and hope the other guy gets caught, or lose money by underbidding (and hoping you get follow-up work), or joining the dark side (not a good idea).

I once bid my equipment to a contractor on a public project. These projects were almost always "won" by the XYZ Company (not their real name). It so happened that my contractor underbid XYZ (they were not expecting competition). That made XYZ mad, so they sued.

XYZ represented a competing brand to GE. In the suit, they stated that, "... General Electric is not a viable supplier of electrical switchgear...", also naming other traditional equipment suppliers (including my company) with the same charge. This incensed the judge, who threw the case out.

However, this also brought the poor ethics of the XYZ company to light, and allowed their competing contractors and suppliers to "display" public records to prospective customers. The XYZ company eventually closed down.

So, unless you can call upon public records or acquire testimonials from independent parties, there is not a lot you can do about unethical competition. Hang in there. Time IS on your side.

 

[plasgears]

I was offered favors many times in the field of plant engineering. I turned them all down.

On the positive side, I had an HVAC contractor who worked ethically by quoting fair prices on jobs and returned money when he met his required margin. I put him on a draw acct because I could trust him. I wrote purchase orders for ongoing maintainence work, which he charged against.