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Daily Legal Advice Series

PPRA Rules on Acceptance of Bids/Negotiations

 Client Query 056:- Hello, Hope everything is well at your end! Please advise whether the second lowest bidder can be awarded contract in case the lowest bidder is not willing to perform the work as per the contract.

 

Sajjad Haider, New York

 

Answer:- Thank you very much for writing to us. As per your query we would like to tell you that if a clear cut provision exists in the bidding documents then in case of failure in execution / award of contract to first lowest evaluated bidder, then the contract can be awarded to the second lowest evaluated bidder. However, in such situation a procuring agency is required to award the contract to the second lowest evaluated bidder keeping in view the principles of procurements as provided under Rule 4 of the Public Procurement Rules, 2004. In addition, it would be more advisable that in case of failure of first evaluated bidder to complete the assignment in the prescribed manner, a relevant provision to forfeit the bid security and performance guarantee of such bidder must exists in the bidding documents.

If you wish to inquire anything else you may set up an appointment with our extremely competent team of lawyers and visit our office which is located at GF-13, Tower A, The Centaurus, Islamabad, Pakistan.

You can also reach us at 0092-300-5075993

The Josh and Mak Team
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