Phase 2: Financing & Appraisal

Undue influence over delivery model selection

Procurement and delivery modalities are chosen or designed under undue influence to allocate responsibilities and risks in ways that benefits particular actors rather than maximise value-for-money.

Red Flags & Indicators

  • The delivery model is selected before the options appraisal is completed or is inconsistent with the documented value-for-money assessment and supporting evidence.
  • Risk allocation, technical requirements, or contractual conditions are structured in ways that unnecessarily restrict competition or favour particular counterparties.
  • Unnecessary interfaces, exceptions, bespoke terms, or contractual complexity reduce the comparability of options and limit effective review and scrutiny.
  • Independent review, market sounding, challenge, or assurance processes are limited in scope, rushed, inadequately documented, or bypassed without justification.
  • Broad change provisions, weak performance triggers, or poorly defined renegotiation mechanisms are embedded at an early stage, increasing the risk of cost escalation, value leakage, or post-award manipulation.

Stakeholder Guidance

Stakeholder Exposure

Exposure includes a reduced access for bidders due to a model designed for specific parties; pressure to endorse skewed risk allocation; higher costs to prepare bids; higher renegotiations and claims risk; and reputational exposure from “rigged” model choice.

Decision Point

Before decision to bid under the proposed delivery model and risk allocation, assess whether appraisal is documented and supported by evidence.

Mitigation Actions

• Disclose advisers supporting bid preparation
• Avoid adviser-and-bidder dual roles, or apply independence safeguards where separation is permitted
• Provide evidence-based input on delivery options and risk allocation (cost drivers, risks, performance), documenting assumptions, limitations, and any deviations from standard practice
• Decline or pause engagement when the delivery model or risk allocation is selected without documented appraisal or a value-for-money rationale, or where terms seem shaped to favour a specific counterparty

Mitigation Resources

Evaluate the assumptions, costs, benefits, and scenarios underpinning delivery-model appraisal; benchmark and challenge cases where the preferred model, risk allocation, or value-for-money case is not supported by reliable analysis.

Appraisal and cost-estimate assurance — https://toolbox.infrastructuretransparency.org/resource/appraisal-and-cost-estimate-assurance/

Require conflict-of-interest declarations and documented conflict management for advisory roles, bidder-adviser dual roles, and other interests affecting delivery-model selection; exclude conflicted parties from the decision process until conflicts are resolved and documented.

Conflict-of-interest management and ethics controls — https://toolbox.infrastructuretransparency.org/resource/conflict-of-interest-management-and-ethics-controls/