ICAI Decision on Low Fee Quotations in Tenders
ICAI Decision on Low Fee Quotations in Tenders – Summary
The Council of ICAI has decided that if a chartered accountant or CA firm quotes an unreasonably low professional fee in a tender—one that is not justified considering the size, value, volume, manpower requirements, and nature of the assignment—the matter may be referred to the Director (Discipline) for appropriate action.
This decision applies to all tenders, irrespective of whether the services are exclusively reserved for chartered accountants or are open to other professionals.
The objective is to discourage unrealistic fee undercutting that could compromise the quality of professional services, promote unhealthy competition, and adversely affect the dignity of the profession. While ICAI does not prohibit competitive pricing, members are expected to quote fees that are fair, reasonable, and adequate to perform the assignment with due professional care and in compliance with applicable standards.
Key Takeaway: Chartered accountants should ensure that their fee quotations reflect the actual scope and complexity of the work rather than focusing solely on submitting the lowest bid.
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