Introduction
Abnormally low bids are one of the most important and frequently disputed issues in Turkish public procurement law. In public tenders, bidders often compete aggressively on price. However, a very low price may raise serious concerns for the contracting authority. If a bidder offers a price that appears too low compared with other bids or the estimated cost, the administration may question whether the bidder can actually perform the contract in accordance with the tender documents, technical specifications, labour rules, material standards and public interest.
In Turkey, the legal framework for abnormally low bids is mainly regulated under Article 38 of Public Procurement Law No. 4734. The official English translation of Law No. 4734 states that after evaluating tenders under Article 37, the tender commission shall determine tenders that are abnormally low compared with other tenders or the estimated cost, and before rejecting such tenders, it must request written details from the relevant tenderers regarding significant components of the bid within a specified period.
The concept of an abnormally low bid serves two main purposes. First, it protects public authorities from unrealistic prices that may later cause non-performance, delay, poor quality, disputes, termination or additional public cost. Second, it protects fair competition by preventing bidders from winning tenders with unsustainable or legally non-compliant prices. Therefore, abnormally low bid review is not merely an accounting exercise; it is a legal, technical and commercial evaluation process.
Legal Basis: Article 38 of Law No. 4734
Article 38 of Public Procurement Law No. 4734 is the central provision governing abnormally low bids. According to the official English translation, the tender commission must first evaluate bids under Article 37. After that evaluation, it determines which tenders are abnormally low compared with other tenders or the estimated cost determined by the contracting authority. Before rejecting such bids, the commission must request written explanations from the relevant bidders about significant components of the tender.
This rule is critical because the administration cannot automatically reject a bid merely because it is low. The bidder must be given an opportunity to explain the economic, technical and commercial reasons behind the price. The explanation stage protects the bidder’s right to be heard and ensures that the administration’s decision is based on objective assessment rather than assumption.
Article 38 also states that the tender commission shall evaluate written explanations by taking into account the economic nature of the manufacturing process, the services provided or the method of works; the selected technical solutions and advantageous conditions available to the bidder; and the originality of the goods, services or works proposed. If the bidder fails to submit a written explanation or if the explanation is found insufficient, the tender is rejected.
Purpose of Abnormally Low Bid Review
The purpose of abnormally low bid review is not to punish bidders for offering competitive prices. Public procurement is based on competition, and lower prices may benefit the public budget. However, the public procurement system must distinguish between a genuinely efficient bid and an unrealistic bid.
A genuinely low price may result from economies of scale, advanced technology, stock availability, favourable supplier agreements, lower production costs, efficient logistics, original technical solutions, or special experience in the relevant sector. Such a bid may be lawful if the bidder can prove that the contract can be performed properly.
An unrealistic low price, on the other hand, may create serious risks. The contractor may later fail to perform, request time extensions, reduce quality, underpay workers, use non-compliant materials, abandon the work, or create disputes with the administration. In construction works, such risks may affect public safety and project completion. In service procurements, they may affect labour compliance and continuity of service. In goods procurements, they may affect product quality, warranty and delivery.
Therefore, Turkish public procurement law seeks a balance. It does not automatically reject low prices, but it requires explanation where the price appears abnormally low.
How the Tender Commission Identifies Abnormally Low Bids
The tender commission identifies abnormally low bids by comparing the submitted bids with other bids and with the estimated cost determined by the contracting authority. In practice, secondary legislation, Public Procurement Authority criteria, limit values and tender-specific rules may also be relevant.
Article 38 provides that the tender commission shall use criteria set by the Public Procurement Authority to determine and evaluate abnormally low tenders. It also states that the Authority is entitled to set limit values or inquiry criteria in the implementation of Article 38.
This means that the contracting authority does not have unlimited discretion. The commission must act within the framework of Law No. 4734, secondary legislation, tender documents and Public Procurement Authority guidance. If the commission identifies abnormally low bids incorrectly or applies the rules unequally, the affected bidder may challenge the decision through complaint and appeal mechanisms.
Request for Abnormally Low Bid Explanation
Once the tender commission identifies a bid as abnormally low, it must request an explanation from the bidder. This request should identify the significant components of the bid that require explanation. A vague or unclear request may create legal problems because the bidder must know which cost items or technical aspects must be justified.
The explanation request is important for both the administration and the bidder. For the administration, it defines the scope of review. For the bidder, it determines what documents and arguments should be submitted. If the request concerns labour costs, the bidder should provide labour calculations. If it concerns material prices, supplier offers and market data may be necessary. If it concerns technical method, production efficiency or innovative process, the bidder should explain the technical basis.
Recent Public Procurement Authority announcements show that abnormally low bid processes continue to be actively updated. In April 2026, the Authority announced amendments to the Public Procurement General Communiqué, including rules that administrations must follow when requesting explanations for abnormally low bids, and improvements to the explanation process in meal service procurements with materials.
What Should an Abnormally Low Bid Explanation Include?
A strong abnormally low bid explanation should be specific, documented and directly connected to the components requested by the tender commission. General statements are usually not enough. A bidder should not merely say, “We have experience,” “We can buy cheaper,” or “Our company is efficient.” The explanation must prove why the offered price is realistic.
Depending on the tender type, the explanation may include supplier quotations, pro forma invoices, production cost calculations, labour cost tables, social security and wage calculations, logistics cost documents, stock records, technical efficiency reports, machinery capacity, special production methods, energy cost data, transport arrangements, subcontractor offers, customs cost calculations, exchange rate assumptions, insurance costs and warranty cost analysis.
For construction tenders, the explanation may focus on work item analyses, unit prices, material costs, labour, equipment, transport, site organization and public unit prices. For service tenders, labour costs, social security obligations, meal, transport, clothing, equipment and contract expenses may be important. For goods tenders, production cost, supplier price, import cost, customs, logistics, warranty and after-sales service costs may be relevant.
The bidder must answer the exact questions asked by the contracting authority. Submitting documents unrelated to the requested components may not save the bid.
Burden of Proof on the Bidder
In abnormally low bid review, the bidder bears a practical burden of explanation. The contracting authority identifies the bid as potentially abnormal and requests details, but it is the bidder who must prove that the price is sustainable and lawful.
This burden is not merely formal. The bidder must show that the contract can be performed under the tender documents and technical specifications without violating labour law, tax rules, quality standards, safety requirements or procurement principles. If the explanation is incomplete, unsupported or inconsistent, the tender commission may reject the bid.
A bidder should therefore prepare for possible abnormally low bid review before submitting the price. If the price is aggressive, the supporting evidence should already be available. Waiting until the explanation request arrives may be too late, especially because the response period may be short.
Abnormally Low Bids in Electronic Procurement and EKAP
Electronic public procurement has become increasingly important in Turkey. The Public Procurement Authority announced that, with the electronic procurement framework entering into force for relevant tenders, abnormally low bid explanations are submitted through EKAP and signed with electronic signature. The Authority also published implementation guides concerning the request, uploading and signing of abnormally low bid explanation documents.
This creates an additional compliance layer. It is not enough to prepare a strong explanation; the explanation must also be submitted correctly through EKAP, within the deadline, and with proper e-signature. A technically valid explanation may still create risk if it is not uploaded, signed or submitted properly.
Companies should ensure that their EKAP users are authorized, e-signatures are valid, documents are uploaded in the required format, and submission confirmations are preserved. During an active tender, EKAP notifications should be monitored daily because an explanation request may trigger a strict response deadline.
Consequences of Failure to Submit an Explanation
If the bidder does not submit an abnormally low bid explanation within the specified period, the bid is rejected. Article 38 expressly provides that tenders of bidders whose written explanations are found insufficient or who fail to make a written explanation shall be rejected.
The Public Procurement Authority’s earlier announcements also clarified that, in electronic tenders where abnormally low bid inquiry is conducted, bidders who fail to submit documents supporting declared information or fail to submit abnormally low bid explanations are excluded from evaluation, although no additional sanction is imposed merely because of that failure.
This distinction is important. Failure to explain usually results in exclusion from that tender, but it does not automatically mean debarment. However, if the explanation contains false documents or fraudulent statements, more serious consequences may arise, including prohibited act allegations.
Evaluation of the Explanation by the Tender Commission
After the bidder submits its explanation, the tender commission evaluates whether the explanation is sufficient. The commission must assess the documents, calculations and arguments in light of Article 38, secondary legislation, tender documents and Public Procurement Authority criteria.
The evaluation should be objective and reasoned. If the commission rejects the explanation, it should explain why the documents are insufficient, inconsistent, irrelevant or non-compliant. A bare statement that “the explanation is not sufficient” may be challenged if it lacks reasoning.
The commission should also respect equal treatment. If two bidders submit similar explanations, they should not be treated differently without objective justification. If one bidder is allowed to rely on certain documents while another bidder’s similar documents are rejected, the decision may violate procurement principles.
Common Mistakes in Abnormally Low Bid Explanations
The first common mistake is submitting generic explanations. Bidders sometimes rely on general statements about experience, market strength or commercial relationships without providing documents. This is risky because Article 38 requires written explanations documented on relevant aspects of the bid.
The second mistake is failing to address the specific components requested by the administration. If the request concerns labour costs, submitting only supplier offers may not be sufficient. If the request concerns material costs, general corporate capacity documents may not answer the issue.
The third mistake is submitting inconsistent calculations. If the bid price, cost tables and supplier offers do not match, the explanation may be rejected.
The fourth mistake is using documents that do not satisfy formal requirements. Supplier quotations, invoices, public unit prices or other supporting documents may need to meet specific conditions under procurement rules.
The fifth mistake is late or improper EKAP submission. Since abnormally low bid explanations may be submitted through EKAP with e-signature in electronic procurement, technical non-compliance may lead to exclusion.
Abnormally Low Bids in Construction Works
Construction tenders are especially sensitive because low prices may affect project quality, occupational safety, completion time and public infrastructure. Abnormally low bid explanations in construction works often involve work item analyses, unit prices, material costs, labour, machinery, transport and site expenses.
The 2026 Public Procurement Authority announcement specifically referred to amendments in the Public Procurement General Communiqué concerning abnormally low bid explanations in construction works. The announcement stated that, for the existing rule allowing non-submission of analyses and supporting documents for work items or groups subject to inquiry to apply, current unit prices and market rates published by public institutions for the month of the announcement or invitation must be used; if current rates for that month have not yet been published, the latest published unit prices and rates may be used.
This update is important because construction explanations often rely on public unit prices and market rates. Bidders should check the announcement or invitation date, current public unit prices, latest published rates, and applicable Communiqué rules before preparing their explanation.
Abnormally Low Bids in Service Procurements
Service procurements may involve labour-intensive contracts, such as cleaning, security, catering, transport, call centre services, maintenance and facility management. In these tenders, abnormally low bid review often focuses on labour costs, minimum wage, social security premiums, meal, transport, clothing, equipment, insurance and contract expenses.
A bidder cannot lawfully justify a low price by ignoring mandatory labour costs. If the tender requires a certain number of personnel, working hours, social benefits or equipment, the bid must account for those costs. An explanation that fails to comply with labour and social security obligations may be rejected.
Meal service procurements with materials are a special category. The 2026 Public Procurement Authority announcement stated that changes were made to simplify and improve the explanation request and submission process for abnormally low bids in meal service procurements with materials, and related standard forms were updated or introduced.
Abnormally Low Bids in Goods Procurements
In goods procurements, abnormally low bid explanations may involve manufacturing costs, supplier offers, stock availability, import costs, customs duties, logistics, warranty obligations, after-sales service and technical compliance.
A low price may be legitimate if the bidder has existing stock, direct manufacturer status, lower production costs, special supplier agreements or efficient logistics. However, these advantages must be documented. A bidder should prove not only that the product can be supplied cheaply, but also that it complies with the technical specifications and warranty obligations.
The 2026 Public Procurement Authority announcement also mentioned amendments intended to clarify which rules apply in the evaluation of abnormally low bids in goods procurement tenders.
Challenging Rejection of an Abnormally Low Bid Explanation
If the contracting authority rejects a bidder’s abnormally low bid explanation, the bidder may challenge the decision through the complaint and appeal system under Law No. 4734. The first step is generally a complaint before the contracting authority. If the complaint is rejected or not answered within the legal period, the bidder may file an appeal complaint before the Public Procurement Authority.
The challenge should focus on why the explanation was sufficient. The petition should compare the explanation request with the submitted documents and show that the bidder answered all significant components. It should also demonstrate that the tender commission misinterpreted documents, applied the wrong legal rule, ignored evidence or violated equal treatment.
A bidder should act quickly because procurement complaint periods are short. If the rejection decision is notified through EKAP, the deadline may start from electronic notification.
Challenging Acceptance of a Competitor’s Abnormally Low Bid
A bidder may also challenge the unlawful acceptance of a competitor’s abnormally low bid explanation. This is common where the winning bidder’s price is very low and other bidders believe the explanation could not have covered mandatory costs or technical requirements.
Such a challenge must be specific. It is not enough to say that the competitor’s price is too low. The applicant should identify likely cost components that cannot be met, legal minimum costs, technical obligations, labour requirements or market realities. If available, the applicant should refer to tender documents, public unit prices, minimum wage calculations, material prices or technical requirements.
The Public Procurement Authority may review the tender file within the scope of the applicant’s claims. Therefore, a well-prepared appeal petition should frame the issue clearly.
Judicial Review of Public Procurement Authority Decisions
If the Public Procurement Authority rejects an appeal concerning abnormally low bid evaluation, the affected bidder may seek judicial review before Turkish administrative courts. Law No. 4734 provides that final decisions of the Public Procurement Authority regarding complaints are subject to review before Turkish courts and that such cases have priority.
Administrative court review focuses on legality. The court may examine whether the Public Procurement Authority and the contracting authority correctly applied Article 38, respected equal treatment, evaluated documents properly, gave sufficient reasons and complied with procedural rules.
Because tender processes move quickly, judicial review must be considered immediately after notification of the Authority’s decision. In appropriate cases, suspension of execution may also be requested.
Practical Checklist for Bidders
A bidder facing an abnormally low bid request in Turkey should follow a structured checklist.
First, read the explanation request carefully and identify each significant bid component requested by the contracting authority. Second, collect documents for each component, such as supplier offers, cost calculations, public unit prices, labour calculations and technical method explanations. Third, check whether the documents satisfy formal procurement requirements. Fourth, ensure consistency between the bid price, cost tables and supporting evidence. Fifth, prepare a clear written explanation linking each document to each requested component. Sixth, submit the explanation through the required channel, especially EKAP where applicable, within the deadline and with proper e-signature. Seventh, save submission confirmations and all supporting records. Eighth, review the tender commission’s decision immediately after notification. Ninth, file a complaint or appeal within the legal period if the explanation is unlawfully rejected.
This checklist is important because an abnormally low bid explanation is usually time-sensitive and document-heavy.
Practical Checklist for Contracting Authorities
Contracting authorities should also manage the abnormally low bid process carefully.
First, the tender commission should determine abnormally low bids according to Law No. 4734, Public Procurement Authority criteria and tender documents. Second, the explanation request should be clear and should identify significant bid components. Third, the administration should give bidders a reasonable and legally compliant period. Fourth, submitted explanations should be evaluated objectively and consistently. Fifth, rejection decisions should be reasoned. Sixth, all EKAP records, notifications, documents and evaluation minutes should be preserved. Seventh, similar bidders should be treated equally. Eighth, the administration should follow current Public Procurement Authority guidance, including 2026 amendments where applicable.
A poorly managed abnormally low bid process may lead to successful complaints, corrective action or cancellation.
Special Considerations for Foreign Companies
Foreign companies participating in Turkish public tenders should be particularly careful with abnormally low bid explanations. A foreign bidder may have legitimate cost advantages due to international production, stock availability, exchange rate structure, direct manufacturer status or global supplier agreements. However, these advantages must be documented in a form acceptable under Turkish procurement rules.
Documents issued abroad may require translation, legalization or explanation. Supplier offers in foreign currency may require currency conversion. Import costs, customs duties, logistics, insurance and warranty obligations must be included. If the tender involves performance in Turkey, local labour, tax and service obligations should also be considered.
Foreign bidders should not assume that international commercial practice will automatically satisfy Turkish public procurement standards. The explanation should be prepared specifically for the Turkish tender file.
Frequently Asked Questions
What is an abnormally low bid in Turkish public procurement law?
An abnormally low bid is a tender that appears unusually low compared with other bids or the estimated cost determined by the contracting authority. Under Article 38 of Law No. 4734, the tender commission must request written explanations before rejecting such a bid.
Can the contracting authority automatically reject a low bid?
No. Before rejecting an abnormally low bid, the tender commission must request written explanations from the relevant bidder regarding significant components of the bid.
What happens if the bidder does not submit an explanation?
If the bidder fails to submit a written explanation or if the explanation is found insufficient, the bid is rejected.
Can abnormally low bid explanations be submitted through EKAP?
Yes. Under the electronic procurement framework, the Public Procurement Authority has announced that abnormally low bid explanations are submitted through EKAP with e-signature.
Can rejection of an abnormally low bid explanation be challenged?
Yes. The bidder may file a complaint before the contracting authority and, if necessary, an appeal complaint before the Public Procurement Authority. Final Authority decisions may be challenged before administrative courts.
Are there recent changes on abnormally low bid explanations?
Yes. The Public Procurement Authority announced 2026 amendments concerning abnormally low bid explanations, including rules for construction works, mandatory rules for administrations when requesting explanations, and simplified procedures for meal service procurements with materials.
Conclusion
Abnormally low bids in Turkish public procurement law are a critical issue for both bidders and contracting authorities. Article 38 of Law No. 4734 creates a structured mechanism: the tender commission identifies bids that appear abnormally low, requests written explanations on significant components, evaluates documented explanations and rejects bids only if explanations are absent or insufficient.
For bidders, the most important lesson is preparation. A low price must be defensible. The bidder should be ready to prove its costs, technical advantages, supplier conditions, labour compliance, logistics structure and performance capacity. Generic explanations are not enough. The explanation must be concrete, documented and directly responsive to the administration’s request.
For contracting authorities, the process must be objective, reasoned and equal. Explanation requests must be clear, evaluation must be consistent, and rejection decisions must be legally justified. Errors in this process may lead to complaints, appeals before the Public Procurement Authority and judicial review.
The increasing role of EKAP adds another layer of compliance. Abnormally low bid explanations may need to be submitted electronically with e-signature, and failure to comply with EKAP procedures may result in exclusion.
For Turkish and foreign companies alike, abnormally low bid review is not merely a pricing issue. It is a legal risk management process. Companies that understand Article 38, prepare strong documentary evidence and act within procedural deadlines can protect their bids and increase their chances of success in Turkish public procurement tenders.
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