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
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
The real barrier to getting more value from digital technology.
Your guide to The Construction Reset at UKCW Birmingham.
Accommodating the Victorian and Edwardian working woman. Book review.
Rethinking passive fire protection in design
PFP demands the same level of design rigour as structure or services.
38% of Gen Zs feel safe when a fire door is wedged open.
Stunning images from around the world
Shortlist for CIOB’s Art of Building photography competition.
Guidance for conversion of traditional pre-1919 stone buildings.
Industrial heritage in the Ruhr
A marked difference to the fate of industrial landscapes in the UK.
Communities will be able to build their own clean energy.
Why diversity and inclusion matters for SMEs
CIOB’s D&I Charter shows how practical changes can support long-term growth.
Cut electricity bills to power growth
Coalition sends joint letter to the Chancellor.
Gasholders: a history in pictures. Book review.