Dhaka, May 9 -- A stern government warning comes against contractors submitting "abnormally low" bids in public-works tenders through understanding, allegedly for windfall gains.

In an official directive, issued on May 4, Bangladesh Public Procurement Authority (BPPA) under the planning ministry notes a surging trend where bidders quoting prices significantly below the official estimated costs.

The bids are sometimes undercut by 50 per cent, 60 per cent, 90 per cent or even up to 99 per cent, according to the findings.

The instructions highlight a major shift in procurement policy under the new government. Previously, under the Public Procurement Rules (PPR) 2008, a 10-percent price-capping rule was in place. This means bids outside th...