The World Bank recognizes that accepting Abnormally Low Bids and Proposals can put the contract in jeopardy: increased overall costs, contract delays or even the collapse of a contract. Consequently, WB has given its guidance. The new methodology described in this post provides Borrowers with a structured approach to address the issue of ALBs.
Contract Risk Scoring is an effective way to analyse contracts for their risks on commercial and contractual issues. We have applied this on a typical World Bank Contract for PLANT. The Contract Risk Scoring is 25 which means it is a low risk contract. This article provides the report and analysis.