Public Procurement and Property

Graduated pricing mechanism guidance: CPN 3/2024

July 11, 2024 by Teigan Kelly No Comments | Category Construction Policy Notes, Procurement news, Scottish Procurement

We have published a Construction Policy Note (CPN) to provide notification of new guidance which details an alternative method of determining the price score in tender assessments – the Graduated Pricing Mechanism (GPM).

What is the GPM?

The GPM is a method to calculate the price score of tender submissions which respects the principle of equal treatment but reduces the incentive to submit low bids. The principle is that the lowest price is awarded the highest score (i.e. 100 marks) with other prices submitted incurring a percentage deduction to their score depending on their distance from the lowest price and proximity to the median price.

This methodology has been developed to encourage tenders to be appropriately priced such that works can be provided which meet the specified requirements without placing unsustainable financial pressures on either the Supplier or the Client Projects.

This CPN provides guidance to assist public bodies plan, procure and manage construction projects. It should also be of assistance to contractors and consultants alike in developing their understanding of how the public sector delivers construction projects. It is applicable guidance under the Scottish Public Finance Manual.

Find out more about how to use the GPM here: Graduated pricing mechanism guidance: CPN 3/2024 – gov.scot (www.gov.scot)

For further information on public procurement in Scotland please visit www.gov.scot/procurement

Please email enquiries to scottishprocurement@gov.scot

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Tags: Construction policy note, Scottish Procurement

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