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
Shortage of high-quality data threatening the AI boom
And other fundamental issues highlighted by the Open Data Institute.
Data centres top the list of growth opportunities
In robust, yet heterogenous world BACS market.
Increased funding for BSR announced
Within plans for next generation of new towns.
New Towns Taskforce interim policy statement
With initial reactions to the 6 month policy update.
Heritage, industry and slavery
Interpretation must tell the story accurately.
PM announces Building safety and fire move to MHCLG
Following recommendations of the Grenfell Inquiry report.
Conserving the ruins of a great Elizabethan country house.
BSRIA European air conditioning market update 2024
Highs, lows and discrepancy rates in the annual demand.
50 years celebrating the ECA Apprenticeship Awards
As SMEs say the 10 years of the Apprenticeship Levy has failed them.
Nominations sought for CIOB awards
Celebrating construction excellence in Ireland and Northern Ireland.
EPC consultation in context: NCM, SAP, SBEM and HEM
One week to respond to the consultation on reforms to the Energy Performance of Buildings framework.
CIAT Celebrates 60 years of Architectural Technology
Find out more #CIAT60 social media takeover.
The BPF urges Chancellor for additional BSR resources
To remove barriers and bottlenecks which delay projects.
Flexibility over requirements to boost apprentice numbers
English, maths and minimumun duration requirements reduced for a 10,000 gain.
A long term view on European heating markets
BSRIA HVAC 2032 Study.
Humidity resilience strategies for home design
Frequency of extreme humidity events is increasing.
National Apprenticeship Week 2025
Skills for life : 10-16 February