A Low Rate of Reduction

A low rate of reduction is where the prices achieved in a tender are close to the estimated cost. The rate of reduction achieved in a tender varies according to the procedure, type, place and conditions of the procurement. Average rates of reduction are determined in the statistics published each year by the Public Procurement Authority. Contracting authorities may compare those statistics, examine whether the rate of reduction achieved is low, and, having assessed competition and the efficient use of resources, exercise their discretion to cancel the tender.