Review of policy allowing the award of public sector contracts on the basis of Adjusted Lower Average Price

17 June 2016

In 2014 RSUA, in partnership with other professional bodies, engaged intensively with the Government Construction Clients to agree a procurement approach that would discourage sub-economic tendering.

In December 2014 guidance was published by the Central Procurement Directorate (CPD) which provided Government Construction Clients with a method of assessing tenders for professional services contracts where the lowest price was not necessarily deemed to be the best price.

Under Procurement Guidance Note 07/14 the price closest to the Adjusted Lower Average Price was deemed to be the best price. The Adjusted Lower Average price was defined as 95% of the average of all tenders excluding the highest tender.

This approach could only be used on professional services contracts below the EU threshold and was introduced as a pilot.

CPD is now reviewing the pilot to establish whether it should be rolled out to appropriate construction professional services contracts or revised.

RSUA is seeking feedback on your experience of this policy and your thoughts on future developments in this area.

Please email Ciarán Fox, RSUA Director, on ciaran@rsua.org.uk by Wednesday 29th July 2016 with your comments. Alternatively call to discuss.