In previous eUpdates: Price Scoring - Getting it wrong? / Price Scoring, Fair Work Practices...and the Living Wage, I discuss relative and absolute price scoring formulas – the disadvantages of the former and the potential advantages of the latter. I also cover a price scoring formula that may assist in promoting fair working practices.
In a previous eUpdate Price scoring - Getting it wrong? I discuss the anomalies thrown up by the use of “relative price scoring formulas”. I show that the use of such formulas may not only lead to potential breaches of public procurement laws, but that they also encourage a “race to the bottom” as tenderers “naturally” wish to obtain the highest score – and they can only do so by pricing as low as they can.