Describe Unbalanced tender in detail 15 marks QuestionSoluti

Describe Unbalanced tender in detail (15 marks Question)

Solution

The tender inviting authority may call the bid unbalanced when the quoted price to get that tender is not around the estimated value of work. For ex: 100 Crore Rs work is to be done and tender procedure has been opted for procurement of contractor to execute that work. The bidders can quote whatever amount they deem fit for executing that task. Now while evaluating the bids, if the quoted amount goes beyond certain limits the bid is called unbalanced. These limits can range from 10 to 30% depending on type of job and competition in market.

Most of the times, if a bidder has quoted quite lower amount to get the work, he is called for justifying reasonability of his bid and why will he not fail in executing the task when the estimated value is high. If the bidder justifies his quote (innovation, fault in estimates, lowering cost of inputs) he will be awarded the work. The client can also asks for extra amount of bank guarantee to safeguard himself from performance issues.