Abnormally low tender
A tender is a submission made by a prospective supplier in response to an invitation to tender (ITT). It makes an offer for the supply of goods or services.
A tender which is a potentially abnormally low tender is one which is less than the estimated value by a margin which requires explanation. In particular, any tender that:
- Is more than 15% lower than the adjusted average price; and
- Exceeds the proximity margin, that is more than 1% lower than the lowest qualifying price.
Potentially abnormally low tenders should be excluded unless the tenderer satisfactorily explains the aspects that appear abnormally low.
NB The adjusted average price is the average of all the tender prices provided excluding the highest tender price.
The proximity margin shall be limited to a minimum value of £1,000 and a maximum value of £100,000.
Ref Guidance for public sector contracting authorities on the procurement of construction works, published by the Scottish Procurement and Property Directorate on 21 Dec 2018.
[edit] Related articles on Designing Buildings
- Competitive tender.
- Cut-throat competition.
- Due diligence when selecting contractors or subcontractors.
- Preferred tenderer.
- Procurement route.
- Tender evaluation.
- Tender processes.
- Two stage tender.
- Invitation to tender.
- OJEU procurement rules.
- Suicide bidding.
- Tender documentation.
- Tender price appraisal.
- Tender return slip.
- Tender settlement meeting.
- Variant bid.
Featured articles and news
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.