Damage to Treasury: Abnormally Low Tenders in Public Construction Works

Abstract

The purpose of this paper is to determine the adverse effect of abnormally low tenders (ALTs) on public construction works in Turkey. A comprehensive literature review was performed to investigate the reasons of ALTs. This paper categorizes the reasons behind ALTs with the help of a questionnaire to which 430 construction companies responded. A detailed analysis of the submitted questionnaires revealed a number of reasons for ALTs and their adverse effect on the construction industry. Staying in the business, miscalculation of bid price, work experience document, and inaccuracy of the conceptual cost were found to be the main reasons behind ALTs. A better database system for contractors on market unit prices, a better quality control assessment in construction and postconstruction phases, full complete design documents in tender packages, and a better evaluation system on the assessment of ALTs are recommended by the study.