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
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available.
AT Awards 2024 ceremony East London October 25th.
Revisiting the AT community at the 2023 awards evening.
The Community Housing Fund and built affordable homes
CLTN reviews the impact of the Fund and calls for extension.
The grading system of the Regulator for Social Housing
A background, an explanation and ten recent enforcements.
Construction, repair and maintenance. Book review.
Putting new life into a city with a 1900 year history.
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Skills gap for net zero highlighted to Minister for Industry
ECA convenes roundtable discussion at Portcullis House.
Evidencing Net Zero with the new UK buildings standard
Pilot version with detailed excel proforma out now!
Scottish Building Safety Levy, in consultation
From direct remediation and the RPDT, to the costs and alternatives.
Waves of warmer homes grants for the rental sector
Boosting energy efficiency standards for all rented homes.
A refocus of the National Planning Policy Framework
Key terms described in brief, as the consultation closes the evening of the 24th.
Fortified farmhouses of the unruly 16th-and 17th-century borders.