Client Query 001 Hello, we are trying to set up a business in Pakistan. If we have mentioned the unit price then an organization might has floated the tender for the supply of various equipment and mentioned their BOQ. We quoted according to their BOQ, if they increase the quantity of one item at the time of ordering then should they add price?
Muhammad, New York, USA
Answer:-
Dear Muhammad,
Greetings from Josh and Mak International. We appreciate your inquiry regarding setting up a business in Pakistan, particularly in relation to tender processes and order fulfilments.
You’ve mentioned that you’re in the process of responding to a tender for the supply of various equipment, where a Bill of Quantity (BOQ) is provided by the organization floating the tender. Your question pertains to a scenario where, after you’ve quoted prices based on this BOQ, the organization decides to increase the quantity of one specific item at the time of ordering. You are seeking clarity on whether the price for this additional quantity should be added in accordance with the unit price you’ve quoted in your bid.
Your query is indeed a pertinent one, as it touches upon the principles of contract formation and modification in tender processes. The response to your query can largely be found within the bidding documents themselves, which often include terms and conditions regarding order modifications post-bid submission. It is crucial to review these documents thoroughly to understand the specific provisions they contain regarding such changes.
Generally, in tender processes, if the quantity of an item is increased after the submission of bids, the contractual terms set out in the tender documents will dictate how the pricing should be adjusted. If the tender documents or the contract formed thereafter provide for a unit price structure, then logically, an increase in quantity would necessitate an adjustment in the total contract price based on the unit price you have quoted. This ensures fairness and transparency in the procurement process.
However, it’s essential to note that each tender process can have its own set of rules and stipulations. Some tenders might allow for a renegotiation of price in case of substantial changes in order quantities, while others might strictly adhere to the unit prices quoted irrespective of quantity changes.
It is also advisable to consider the implications of such changes on your capacity to deliver, the impact on timelines, and any cost implications that might arise due to scale alterations. Should the tender documents be unclear on this matter, it may be prudent to seek clarification from the tendering authority before proceeding.
If you require further assistance in interpreting specific clauses of the tender documents or need any legal support in navigating this process, our team at Josh and Mak International is here to assist you. We can provide detailed legal advice tailored to the specifics of your situation, ensuring that your business interests are adequately protected while complying with the legal framework governing tenders in Pakistan.
Best regards, Josh and Mak International Team
