Professional Documents
Culture Documents
Introductory comments
Contractor may low-ball price to win the contract and seek to recover losses
through contract claims
Legislative Provisions
Regulation 69 of SI 329/2006:
Constituent elements may include: Economics of the construction method, manufacturing process or means to
be used
Technical solutions or any exceptional favourable conditions
Originality of the work, products or services
Extent to which employment protection/working conditions provisions are
being complied with
Whether there is a possibility that tender may receive State aid
Can exclude tender if only reason for abnormally low bid is State aid but
only after bidder has been consulted and bidder has failed to satisfy
contracting authority that State aid was granted lawfully
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Arrowsmith, The Law of Public and Utilities Procurement (2nd ed) para.
7.138
concept is not defined, but it refers to an offer that, because of its
favourable terms, raises a suspicion that the provider will not be able to
perform according to the terms offered
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Tender documentation
S.5.6: Candidates must not use abnormally high or low rates or prices.. Each
amount must cover the full inclusive value (excl. VAT) of the relevant work, and
where applicable, a fair allocation of the tendered Contract Sum may result in
non-compliant tender or application of S.8.3
S.8.3 If, in the Employers opinion, the tendered Contract Sum is abnormally low or
any tendered amounts are abnormally low or abnormally high, the Employer may
require the Candidate to provide details of the constituent elements of the tendered
Contract Sum or the tendered amounts If having considered the information
provided, the Employer is of the view that either the Contract Sum is abnormally low
or any tendered amounts are abnormally low or abnormally high, the Employer may
reject the Tender
Conclusions
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