The cheapest bid looks risky. How should we evaluate it?

Price-only procurement decision

Compare capability, delivery assumptions, lifecycle cost, support, and relevant risk using the approved evaluation process. A low initial price is not automatically the lowest-cost usable outcome.

What to do now

  1. Confirm mandatory requirements
  2. Evaluate evidence against consistent criteria
  3. Clarify material assumptions and exclusions
  4. Document the authorized selection rationale
Recommended action flow for price-only procurement decision: Confirm mandatory requirements then Evaluate evidence against consistent criteria then Clarify material assumptions and exclusions then Document the authorized selection rationale. Escalate when the bid fails a mandatory requirement or contains unexplained material risk.

When to escalate

Escalate when

The bid fails a mandatory requirement or contains unexplained material risk.

Who decides

The authorized procurement or commercial owner

Example

A low bid is assessed for missing support and migration work before its apparent saving is accepted.

Mistake to avoid

Changing evaluation criteria after seeing preferred prices.

Prevent a repeat

Compare supplier evidence with agreed obligations; refer contract interpretation and remedies to qualified owners.

Suggested ApprovedFlow setup

  • Vendors
  • Documents
  • Tasks
  • Approvals

Keep supplier commitments and evidence linked to the project, assign follow-up work, and route commercial decisions to authorized owners. See the platform

Related cases

Practice references