Fatwa ID: 04497

Answered by: Maulana Mustafa Umar

Question

I have recently started a business and most of the work comes through tender but if I want to get a tender, I have to pay some sort of commission. Without commission, I can’t get the order am supplying the right product, but still, I have to pay commission. Could you suggest to me what should I do? I mean is that halal or haram? Is there any other way to do that? Thanks.

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

According to Wikipedia, a Request for Tender [RFT] is “a formal, structured invitation to suppliers to submit a bid to supply products or services”. It also goes on to explain: “In the public sector an official fee is needed to fortify and secure the tender bid engagement/win documents, such a process may be required and determined in detail by law to ensure that such competition for the use of public funds is open, fair and free from bribery and nepotism.”

Therefore, it appears that it is standard to have an official fee to secure a tender. It appears that this practice would be allowed since there is no objection to charging a processing fee, however, to give you a definite answer we would need to see and examine the details of the process and documentation.

Only Allah knows best

Written by Maulana Mustafa Umar

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham