Abnormally low tender
An abnormally low tender is priced so low that delivery is in doubt. How UK and Irish buyers must investigate it, and how to justify your price convincingly.
Updated on September 5, 2026
An abnormally low tender is one whose price is so low that the buyer doubts the supplier could actually perform the contract for it. Under the Procurement Act 2023 the buyer may disregard such a tender, but only after giving the supplier a proper chance to explain.
How it works
There is no arithmetic test. The buyer judges each case by comparing the price with its own budget estimate, with the other tenders received and with normal market costs. A large gap is an indicator, not proof.
Section 19 of the Procurement Act 2023 (verified 2026-09-05) sets the procedure for England, Wales and Northern Ireland: before disregarding a tender as abnormally low, the buyer must notify the supplier that it considers the price abnormally low and give it a reasonable opportunity to demonstrate that it can perform the contract at that price. Only if the supplier fails to satisfy the buyer may the tender be set aside. Unlike the 2015 regulations it replaced, the Act gives no illustrative list of acceptable explanations, but anything bearing on your ability to deliver at the price is relevant: production method, technical solution, unusually favourable supply terms, an original approach, lawful public support.
Irish buyers follow the older wording taken from the EU directive, which keeps that list and requires a tender to be rejected where the low price results from a breach of environmental, social or labour law. The investigation can also cover sub-contract prices and, on a schedule of rates, a single line that would make delivery impossible.
What it means for a bidder
A request for justification is not a rejection. It is a chance to show that you know your costs: answer precisely, line by line, with figures and evidence. Set out labour, plant, materials, sub-contract costs and margin, and explain the advantages that let you price where you did. A vague reply, or a bare assertion that the price is viable, leads to exclusion.
To avoid the situation, build your price from real costs and keep your take-off. A very low price obtained by missing an item in the specification will be found out. Note that public buyers must pay valid invoices within 30 days, so a tight price is not compensated by slow cashflow elsewhere.
Conversely, if a competitor wins with a price you believe is unworkable, you can ask the buyer whether it carried out this investigation. A failure to do so can support a procurement challenge.
Example
A fictional English district council tenders school cleaning for three years, estimated at £120,000. Four tenders arrive between £108,000 and £125,000, and a fifth at £68,000. The council writes to the lowest bidder. The reply runs to two pages with no breakdown of hours. The council's own calculation shows the price would not cover wages at the real living wage: the tender is disregarded and the contract goes to the bidder at £108,000.
Frequently asked questions
Is a low price always abnormal?
No. A price justified by efficient organisation, written-down plant or genuine innovation is perfectly acceptable. Only a price that puts delivery in doubt is abnormal.
Can a buyer reject without asking for an explanation?
No. The notification and the opportunity to respond come first. Rejecting without them is a breach that can be challenged.
What if the deadline to respond is very short?
Answer within it anyway, with as much detail as you can, and ask for a short extension if you need one. Silence means your tender is disregarded.