Abnormally Low Tenders

The rules on public procurement primarily concern procedures, and only one provision affects the substantive assessment of the price, by giving contracting authorities a right to reject tenders Hereby, the provision on abnormally low tenders indirectly regulates the tenderers' price setting. The pro [...]
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The rules on public procurement primarily concern procedures, and only one provision affects the substantive assessment of the price, by giving contracting authorities a right to reject tenders Hereby, the provision on abnormally low tenders indirectly regulates the tenderers' price setting. The provision seemingly implies that there is no obligation to reject abnormally low tenders. This is the point of departure taken in the book. When contracting authorities are given the possibility of rejecting tenders that are verified to be abnormally low, thoughts are directed towards the difficult task of distinguishing between genuine price competition and abnormally low tenders. In other words, by making it possible to reject abnormally low tenders, it is implicitly acknowledged that not all forms of (price) competition are desirable.