What risks do you have to present an excessively low offer?
Putting a ridiculously low offer in a public tender ... Look, may sound tempting at the beginning, roll "Eh, we surely win because nobody is going as low as us", but the reality is that you get into a berenjenal of care. That is, in the short term you can celebrate because you won the tender, but then, when you realize that the numbers do not fit and the real costs begin to bite your back ... well, the party ends fast.
Let's see, one of the greatest trouble is that they can cross you out of "reckless offer." And this is not just a beautiful word; It means that your price sounds so suspiciously low that, basically, the administration wonders if you are serious or improvise. In many countries (Spain, for example, it makes it very clear in article 149 of its public sector contract law), if you cannot justify why your offer is so low, they send you directly to the paper. Without contemplation.
And if for a miracle they let you pass and you end up winning, but then you realize that you have no pasta to meet ... well, prepare so that your reputation goes out of the drain. Nobody wants to hire the company that promises gold at a copper price and then does not comply. In addition, if you cannot deliver what you promised, you just eat any sanction or end up in legal trouble. And that, honestly, nobody wants it.
And what about quality? Well, guess. If you promise to do everything cheap, you end up cutting corners everywhere. More cutter materials, less personal, hurry ... In the end, the work comes out regulero, the client notices and your name is marked. And if the thing gets ugly and the costs shoot, you can end cash problems, without being able to pay for employees or suppliers, and in the worst case, plating the business. A disaster
Come on, here is not just about going to the lowest and now. You have to make numbers, think in the medium and long term and, above all, not go crazy down prices just to win. Better present a decent, competitive offer, but do not leave you without air.
Anyway, that the cheap is expensive, and in public tenders this is multiplied by ten. You have to think twice before pulling the pool with an offer too low, because the blow can be strong.