conflict of interest

A conflict of interest in public procurement occurs when someone involved in a purchasing process has personal, financial, or other interests that could compromise their impartiality. Rules against conflicts of interest are designed to ensure that public contracts are awarded fairly and transparently, without favouritism.

How do conflict of interest rules work?

Under EU Directive 2014/24/EU (Article 24), contracting authorities must take appropriate measures to effectively prevent, identify, and remedy conflicts of interest throughout the procurement process. These rules apply to all staff involved in the process, including external consultants acting on behalf of the contracting authority.

Certain situations automatically trigger disqualification — for example, if an evaluator has a family relationship with someone at a tendering company, or holds a position on their board. Beyond these automatic grounds, a broader assessment applies: any situation where a person's impartiality could reasonably be questioned may constitute a conflict of interest.

A useful rule of thumb: if the situation would look questionable on the front page of a newspaper, it probably needs to be addressed. In Norway, where the concept is known as "habilitet", courts have established that stricter standards apply in procurement cases than in general administration.

Why are conflict of interest rules important?

These rules matter for several reasons:

• They ensure equal treatment of all suppliers in a tender procedure
• They protect public trust in how taxpayer money is spent
• Contracting authorities are obligated to have systems for preventing and managing conflicts
• Suppliers can challenge decisions through complaint bodies like KOFA in Norway

The consequences of unaddressed conflicts can be severe. If a conflict is discovered after award criteria have been evaluated, it may lead to a supplier's exclusion or even the cancellation of the entire competition. Tools like Cobrief help suppliers monitor contract notices and keep track of procurement processes where transparency and fair treatment are essential.

Conflict of interest rules are a cornerstone of public tender regulations. By ensuring that decision-makers remain impartial, these rules uphold fair competition and public confidence that procurement serves the common good.