What is the procedure under existing procurement legislation, if an individual has short-listed a consortium and then a member drops out before the contract award?

This is really dependent upon the specific circumstances of the case. Should a change have little or no effect on the consortium’s ability to settle procurement, then there is no reason to believe that the pre-qualification status has been invalidated. If the change is more fundamental, then the pre-qualification status is likely to be in doubt. Thus, under these circumstances, the utility might wish to remove the consortium from the procurement short list.