Procurement in a Nutshell: Abnormally low tenders
12th June, 2026
This nutshell provides an overview of what is meant by an abnormally low tender, how to identify one, what the law states and what to do before accepting a lower tender.
What is an abnormally low tender?
An abnormally low tender is a bid which appears to be significantly lower than the requirement, the market or other supplier bids. It is not simply about competitiveness; it concerns whether the price is unrealistic or unsustainable without comprising on delivery, quality or compliance.
A tender may look abnormally low because the bidder has missed costs, made unrealistic assumptions, or priced in a way that transfers risk back to the buyer.
The difference between an abnormally low tender and good value
Not every low bid will equate to an abnormally low tender. There are a few circumstances where tenders may be lower than other bids due to:
- Efficient supplier methods
- Advantageous supplier chain rates
- Use of technology to reduce time/effort
- Understanding the scope better than their competitors
A competitive bid will be able to show a clear, logical and consistent cost model and delivery plan. An abnormally low tender will highlight its limitations when you test the numbers provided against the proposed service.
PCR 2015 vs PA 2023
Under the Public Contracts Regulations 2015 (PCR 2015), the contracting authorities were required to request an explanation from the bidder when dealing with what appeared to be an abnormally low tender.
However, from 24 February 2025, the Procurement Act 2023 applies to new procurements and the rule has subtly changed. Under this new Act, before a buyer can disregard the tender for being abnormally low, they must give the supplier a reasonable opportunity to demonstrate they will be able to perform the contract at the price offered. If the supplier can demonstrate to the contracting authority’s satisfaction that it is able to perform the contract under the price offered, the authority may not reject the tender. There is no longer a positive obligation on the authority to require an explanation from the bidder.
What to do before accepting an abnormally low tender if you are considering that it should be disregarded
- Compare the bid to other offers and decipher why it appears abnormally low.
- Request an explanation and allow opportunity for the supplier to demonstrate feasibility.
- Assess the explanation and decide whether it Is deliverable, looking beyond price and considering things like credible delivery model, cost of maintenance and whether the risks have been calculated properly.
For further information, please contact Tim Care or Melanie Pears in or Public Sector team.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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