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Abnormally Low Tender Prices: Downfall of the Construction Industry

Publication at Faculty of Law |
2015

Abstract

Seen mainly in public tenders, abnormally low tender (ALT) prices have caused enormous problems to the construction industry in many different countries. In the majority of cases, an abnormally low tender price is a significant risk in construction projects.

If the tender documents are not well prepared, the risks of contractors gambling, claims arising and increased final project costs will definitely be higher than usual.