Referential bid


A referential bid is a bid or tender for the purchase or supply of goods or services whose value is stated by reference to the bids or tenders received from competitors, e.g. "such a sum as will exceed by £200 the amount... offered... by any other proposing purchaser". Case law in various jurisdictions has generally ruled that referential bids frustrate the purpose of sealed competitive bidding and are therefore unfair.

Case law