New Court of Appeal: "The right to PASS UP low bids" - IDG.se

Hans Sundström, IT Procurement Manager of Administrative Services Agency. Photo: Anna Ruth Fridholm.

– The ruling means dramatically improved conditions to deal with this problem, says Hans Sundström, IT Procurement Manager at Kammarkollegiet.

The new Appeal Judgment for a procurement city of Gothenburg conducted. The contract was admittedly construction work. But the content of the judgment – that is dynamite in procurement circles – will also have a dramatic impact on IT procurement and especially the problem of the Euro coin offer IT consultancy contracts, believes Hans Sundstrom

City of Gothenburg was into several extremely low bids in its construction contracts. Municipal purchasers did not think providers explanations of the

super low bids were credible. Therefore stamped the tenders as frivolous low and threw them out of the contract.

providers appealed and was not unexpected against the municipality in the Administrative Court. Swedish case law has put the entire burden on purchasers to prove extremely low offer is rogue. In other EU countries, it is the suppliers who put the super low bids must prove their economic sustainability and not just price tactics.

But Gothenburg City appealed further – and may now surprisingly right of Appeal. Appeal states that it is also up to the supplier to prove extremely low bids are for real and not just fictional jest prices used to win the competition.

– Administrative changes its practice on this point and adhere instead to the practice in other EU countries, says Hans Sundström.

He says that judgment in practice greatly hampers for example, suppliers that add fictitious enkronasbud for winning IT consultancy contracts.

– Now that burden of proof is shifted, it will instead raise these suppliers to demonstrate that commandments are serious and that you really mean to deliver to the hourly rates they set, says Hans Sundström, who says he is “very grateful” to purchasers in the city of Gothenburg dried pursue the important matter until Appeals.

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