Noncompliance in Procurement

Business Guide | June 2018

Procurement noncompliance relates to situations where the borrower fails to follow the applicable provisions of the 2017 procurement regulations or agreed alternative procurement arrangements.

ADB’s 2017 procurement policy and procurement regulations offer a more flexible and proportional approach in the handling of situations where borrowers have not complied with the financing agreement. This guidance note provides detailed information on addressing procurement-related noncompliance issues and factors that guide remedial actions. Dealing with noncompliance in an appropriate and timely manner has several benefits, including increasing efficiency and reducing procurement time, reducing risk of complaints and bidding process failures, and fostering better project outcomes.

Video: What is Noncompliance in Procurement?


  • Introduction
  • Determination of Noncompliance
  • Assessment of Noncompliance and Remedial Actions