Abnormally Low Bids
Business Guide | June 2018
An abnormally low bid requires additional investigation as it could be a sign of risks such as a lack of technical or commercial competence, an intent to not follow design standards or specifications, and/or an intent to not comply with environmental or labor laws.
This guidance note is intended to assist users with identifying and addressing abnormally low bids during the bid evaluation phase for projects financed in whole or in part by an ADB loan or grant, or by ADB-administered funds. It also highlights the approach to evaluating an unbalanced bid or front-loaded bid that may or may not be a part of an abnormally low bid. With this step-by-step guide, users can determine whether to reject abnormally low bids, require an increase of the performance security amount as a condition to award the contract, or simply accept such bids.
Video: What is an Abnormally Low Bid?
- Dealing with Abnormally Low Bids
- Summary of the Abnormally Low Bid Assessment Process
- Appendix: Detailed Breakdown of Cost Comparison