How are price and quality evaluated in a tender?

The lowest price is not necessarily the winning bid. Read the evaluation criteria to see whether selection is based on price alone, a combination of price and quality or another method. Distinguish eligibility requirements, which determine participation, from criteria that award points to a bid.

Where quality is scored, record the weight of each component and the evidence used to assess it. Additional experience, the proposed team, a work plan, an interview or a demonstration may be assessed only as specified in the tender documents. Check for a minimum quality score required before the price is considered.

For pricing, check whether the tender requests a total price, unit prices or a discount percentage, and how VAT is treated. Do not assume quantities in a table are guaranteed orders; read the scope definition and the method used to calculate the price for comparison.

Before setting a price, account for labour, equipment, travel, insurance, guarantees and financing until payment arrives. Review the contract term, extension options, indexation provisions, payment timing and any contractual compensation or penalties.

Use the published scoring formula to understand how price and quality combine, but remember that a relative score may depend on competitors' bids. If the formula or scope is unclear, request clarification in time. A sound price must support delivery of the commitments, not just winning the tender.