It depends on the regulations under which the tenders are received. I have at times not accepted the lowest tender because of defects in it or lack of confidence in the people behind it. Generally there must be a valid reason unless the decision is made by an owner of the works.
Sometimes the lowest tender is not much lower than others and differences occur in the meeting of requirements or qualities of materials.
On many occasions the lowest tender is accepted, but it is not usually a rigid requirement.
You can reject a lowest tenderer if you have sound justification to prove that the lowest tenderer can not deliver what you want. It needs thorough home work like the acceptable cost estimation of the item, foolproof specification under umbrella of the the applicable rules and regulations.
Dear Jerry Decker ... really good answer... thanks...
you mention that " lack of confidence in the people behind it " that reason could be forget with hard commitment and legal conditions in the contract... in that case the law will handle bad contractor, .... what do you think...?
Dear Segun Michael Abegunde .... Thanks for joining our discussion..
Dear R. Rajendran ... thanks for answering..
So, first of all we must to provide a list of exactly what the owner want... good point ... but what if we have two tenders satisfy this list... with different value...?
I do not understand the question very well, because I do not see contextualized, which area specifically speak?
Dear Ivan David Lozada Martinez .... I'm talking about construction contracts, and tendering... and if any interested want to answer in general bidding and tendering, .. that will be useful for sure....
Thanks for joining our discussion...
Regards...
Dear M. A. A. Al- Fatlawi ... Thanks for joining our discussion...
The lowest tender is not always the best option.
The proposal from the lowest tenderer must also be TECHNICALLY SOUND AND FEASIBLE.
The Finished work MUST CONFORM TO ACCEPTABLE STANDARDS.
it is not uncommon for a tenderer to UNDERVALUE, UNDERESTIMATE AND UNDER CHARGE For a particular Project, then ask for Supplementary Supplies to Complete the work.
In some cases, the person may use SUBSTANDARD EQUIPMENT and MATERIALS TO COMPLETE THE PROJECT if he is COMPELLED TO WORK WITHIN the ORIGINALLY AGREED BUDGET.
Dear Joseph Adjebeng-Danquah ... Thanks for answering..
You mentioned that " the person may use SUBSTANDARD EQUIPMENT and MATERIALS TO COMPLETE THE PROJECT if he is COMPELLED TO WORK "...
Thats mean, this tender will complete the works in better way, ... maybe .. faster, ... or more quality, .... that deserved to accept his tender even its higher...what do you think..?
The employer is not obliged to accept the lowest bids and has the right according to his discretion to accept or refuse to tender or cancel the tender without the bidder having the right to claim any compensation.
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