How Public Procurement Works

A short guide to how the government buys goods, works and services, and why it matters for accountability.

Why procurement matters

Public procurement, buying everything from road-building contracts to office supplies, is one of the largest channels for public spending, and one of the areas most exposed to corruption. Following the process matters because it shows whether public money is being spent fairly and effectively.

The basic steps

1. Planning: a government body identifies a need and budgets for it.
2. Tender notice: the opportunity is advertised publicly, usually through a central procurement portal and/or a newspaper notice, with the rules for bidding.
3. Bidding: companies or individuals submit bids by a stated deadline.
4. Evaluation: bids are assessed against published criteria, such as price and technical capacity.
5. Award: a contract is awarded, usually to the lowest responsive bidder, and this decision is meant to be publicly recorded.
6. Delivery and payment: the winning bidder carries out the work, and payment is released as agreed, often in stages.

What can go wrong

Common problems include tenders written to favour one bidder, inflated prices, ghost or unfinished projects, and payments made without the work being completed. See our Procurement Watch and Corruption Tracker.

Where to look further

Public Procurement data · Tender Documents · Report public money misuse