"You either embrace the industry culture (graft) or go change your job. This is about survival, nothing else," said Abu Bakar (not his real name), a 34 year-old Bumiputera contractor who has been in the construction business for a decade.

He believes there was nothing wrong in "giving a little something to show your gratitude" provided the gesture is not overdone.

"You should see what the ministers and high-ranking government officials are getting. It puts to shame whatever the police are accused of accepting, which is mere chicken feed," he said in a recent interview.

"The 'industry practice' is two percent of the total contract value. Imagine if it is a multi-million or -billion ringgit job. Do the maths yourself. You'd be shocked with the figures."

Last week, the Malay Contractors Association declared at an integrity forum that the construction industry was plagued by corruption and bureaucracy.

The downward slide in Transparency International's ranking of Malaysia - 39th out of 146 countries - in last year's corruption perception index is a clear sign of the debilitating scourge.

The numerous stages and number of officials a contractor has to go through between the pre-tender period and winning a bid, he said, provides fertile ground for graft to take root.

He said that by virtue of being the biggest client for public contracts, the government has become the main receiver of bribes.

To bid for a public contract, he said, it is vital for a contractor to get additional information not found in the published tender document, which is, the quoted price.

"This is where contractors have to court an insider, usually a procurement division personnel involved in preparing the tender. This is also the stage where bribery is quite common," explained Abu Bakar.

"Although upon submission, a tender document is classified private and confidential, there are times when some information is leaked out to rival bidders in an attempt to raise the stakes for bribery."

Public contracts

Previously, he said, contracts were awarded to the lowest bidder and/or the bid that comes closest to the client's quoted price.

But the present trend is a means test using the 'Bell curve' which he said pretty much depended on who the insider(s) favour, and which sometimes resulted in a genuinely good or comparable bid being booted out.

"Depending on how big a project is, the contractors will lobby either the ministry's secretary-general himself or the minister concerned."

But Abu Bakar was quick to add that only segelintir (a handful) of insiders were involved in corruption of this kind.

"I've personally known and have heard about officers who have refused accepting gifts in any form, be they festival hampers, birthday presents or simple tokens of appreciation.

"Their polite refusal is definitely praiseworthy. For example, I had once sent a festive hamper to an official's home. He called asking to send someone over to pick it up immediately."

He said there were also others who have refused meal treats, rejected gifts of electronic/electrical goods or paid for their own meals if in a hotel or expensive restaurant.

"Unfortunately, such a practice has become an industry culture, so much so that you're either in it or you're dead in business," he said.

"Most of us don't like to do it (offer bribes) because we end up spending more money which we have to recoup through other means, but it's all about survival.
"If we decide not to court insiders this way, there are tens of others queuing up to splurge on them. And sadly, that is the reality."

Choose-a-bribe

Abu Bakar said there was more than one way - with and without bribes - to get a contract.

The non-bribe way is by obtaining a letter of recommendation from top-rank dignitaries including the prime minister and menteris besar while the other is by offering bribes.

"It could be a fully-paid holiday abroad, hotel lunches/dinners, golf/club memberships, 'fixed' golf tournaments, large amounts of cash stashed in an overseas account and so on.

"Everything is as per request (of the receiver) and contractors are only too happy to oblige because they need to make money, by hook or by crook," he said.

He said the weak spot for graft within the construction sector is mostly at the stage of supply or use of construction material and the quantity involved.

"This is why most contractors love earthworks or roadworks because these are the easiest to manipulate and most difficult to inspect or detect," he said.

"The collusion which promotes graft exists among contractors as well as with on-site supervisors or project consultants who are tasked with verification and certification.

Cutting corners, he said, is an all-time favourite among contractors working hand-in-glove with consultants.

"Project consultants or on-site supervisors such as engineers and quantity surveyors are as much to blame for graft as their approval ultimately determines the claims a contractor is entitled to."

Abuse of process

Abuse of the claims process is an additional weak spot where a lot of money changes hands.

Abu Bakar said claims on provisional contracts, which are based on the quantity of material used or amount of work done, is the most abused.

"The failure of on-site supervisors to monitor work in progress, including material used and compliance with stipulated specifications, usually lead to sub-standard or shoddy work.

"For example, there are varying grades of concrete which contractors can cut corners on with the tacit approval of the on-site supervisors or consultants in exchange for a reward.

"The other favourite involves piling work even though there is a device to detect the exact depth."

The industry's 'graft culture' has also caught on with suppliers of construction materials, he said, where some offered bribes to insert exclusive items in the tender specifications, creating a monopoly.

"This guarantees profit regardless of which company wins the bid."

He believes that part of the problem was with the tender evaluation committee and process.