Chartered accountant irrationally low fees
This query is : Resolved
04 August 2014
Recently a government department requested for quotation for certain professional work. Where I along with other quoted professional fees. The work got allotted to a chartered accountant who quoted rupee 1 only for the entire work which I estimated would take at least 360 man days of CA. Even the cost of one time travelling to that department is more than 200 rupees. How far the quotation of rupee 1 is justified?
13 August 2014
it is not at all justified Anand. But thats low this profession has fallen.
13 August 2014
@nikhil Thanks for your reply. But I want solution to it.
19 July 2024
The quotation of ₹1 for the entire professional work by the chartered accountant raises significant questions about its justification and feasibility. Here are several aspects to consider regarding such a low quotation:
### 1. Understanding the Context:
- **Scope of Work:** If the work truly requires 360 man days of effort as estimated by you, quoting ₹1 implies a gross undervaluation of the professional services required.
- **Government Department Practices:** Sometimes government departments may have specific criteria for selecting bids, including the lowest cost bid. However, such criteria usually require that the bid is realistic and covers the cost of providing the service.
### 2. Considerations for a Realistic Quotation:
- **Cost of Service:** Professional services such as those provided by chartered accountants involve significant expertise, time, and resources. Even a basic calculation of minimum wage per hour for a chartered accountant would far exceed ₹1 for 360 man days of work.
- **Viability:** A quote of ₹1 suggests that either the chartered accountant misunderstood the requirements, made an error, or is engaging in a practice that is not sustainable or ethical in the long term.
### 3. Ethical and Professional Considerations:
- **Professional Integrity:** Chartered accountants are bound by ethical standards that include providing services competently and for fair compensation.
- **Market Standards:** Such low quotations can undermine the market for professional services and set unsustainable precedents.
### 4. Possible Explanations:
- **Subsidized Work:** In some cases, professionals may quote very low rates to gain visibility, secure future work, or due to non-financial considerations.
- **Contractual Obligations:** It's possible there are undisclosed conditions or benefits associated with the contract that make such a low quote appear viable.
### Conclusion:
While competitive bidding is common, a quote of ₹1 for 360 man days of professional work by a chartered accountant is highly irregular and raises concerns about the quality, sustainability, and ethical implications of the services provided. It may be worthwhile for stakeholders, including professional bodies or regulatory authorities, to investigate further if such practices compromise the integrity of professional services or adversely impact market standards.
If you believe this practice is concerning, you may consider bringing it to the attention of relevant authorities or professional bodies for further scrutiny or clarification.
### 1. Understanding the Context:
- **Scope of Work:** If the work truly requires 360 man days of effort as estimated by you, quoting ₹1 implies a gross undervaluation of the professional services required.
- **Government Department Practices:** Sometimes government departments may have specific criteria for selecting bids, including the lowest cost bid. However, such criteria usually require that the bid is realistic and covers the cost of providing the service.
### 2. Considerations for a Realistic Quotation:
- **Cost of Service:** Professional services such as those provided by chartered accountants involve significant expertise, time, and resources. Even a basic calculation of minimum wage per hour for a chartered accountant would far exceed ₹1 for 360 man days of work.
- **Viability:** A quote of ₹1 suggests that either the chartered accountant misunderstood the requirements, made an error, or is engaging in a practice that is not sustainable or ethical in the long term.
### 3. Ethical and Professional Considerations:
- **Professional Integrity:** Chartered accountants are bound by ethical standards that include providing services competently and for fair compensation.
- **Market Standards:** Such low quotations can undermine the market for professional services and set unsustainable precedents.
### 4. Possible Explanations:
- **Subsidized Work:** In some cases, professionals may quote very low rates to gain visibility, secure future work, or due to non-financial considerations.
- **Contractual Obligations:** It's possible there are undisclosed conditions or benefits associated with the contract that make such a low quote appear viable.
### Conclusion:
While competitive bidding is common, a quote of ₹1 for 360 man days of professional work by a chartered accountant is highly irregular and raises concerns about the quality, sustainability, and ethical implications of the services provided. It may be worthwhile for stakeholders, including professional bodies or regulatory authorities, to investigate further if such practices compromise the integrity of professional services or adversely impact market standards.
If you believe this practice is concerning, you may consider bringing it to the attention of relevant authorities or professional bodies for further scrutiny or clarification.
21 July 2024
do not waste your time with 10 year old queries. respond to current ones. its not a competition!!
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