Determination of Non-Price Criteria Alongside Price in Works Contracts and an Illustrative Application

15 September 2025

There is a risk that contracts for works tendered solely on the basis of the prices offered may be left unfinished by contractors acting in bad faith, or performed to a low standard. Where the economically most advantageous tender is determined solely on price, it is possible to win a tender by setting very high prices for the profitable parts of the contract and very low prices for the loss-making parts. The contractor may then perform the profitable parts and, leaving the remainder unperformed, cause the contract to be terminated and loss to the public purse. It therefore falls to contracting authorities to ensure that appropriate tenders capable of delivering the work are submitted, by determining non-price criteria alongside price.