Qualification criteria for a bidder of contract, Financial Management

Qualification criteria

We discussed how to prepare the bid documents. Let us now see what criteria should be considered to qualify a bidder.

You will have to open bidding to receive competitive bids. Your intention is to award the contract to a well qualified bidder who can be expected to perform the contract satisfactorily.

In order to provide transparency in the contract award process, you should pre-disclose the minimum qualification criteria (that the bidders have to meet for award of the contract) in the bidding document.

The minimum qualification criteria for works related bid document should include the following:

  • Bidder's annual return must be at least twice the estimated annual payment which is mentioned in the contract. This annual return must be maintained for the last five years by the bidder's company.
  • Bidder must have completed at least one work of similar category for which the bid is invited. For example, if you have called bids for malls the bidder must have at least constructed one mall during the required period. The cost of project that they have completed must at least be

50% of the estimated cost of the work for which the bid is invited.

  • They should have executed specified quantity of selected items of work during the past five years (usually not less than 80% of the expected peak rate of construction).
  • The bidders should have specified liquid assets for ensuring uninterrupted progress of works (usually not less than three months requirement during peak period).
  • The bidders should have specified number of critical equipment needed for ensuring quality and progress of work.
  • The bidder should have specified number of technical and management personnel to ensure successful implementation of contract.

In case you invite bids for several packages in one invitation, a situation may arise, where a bidder may become lowest in some of the packages. He than  has  to  satisfy  the  stipulated  qualification  criteria  for  each  of  the package for which he is the lowest bidder. Then you can award more than one contract to the same bidder. In such an event the bidder may not be able to execute all the works simultaneously, since he does not have the needed resources. In such cases, before awarding the works, you need to check whether the bidder satisfies the aggregate of the required minimum qualification criteria for all the packages for which he is the lowest bidder. Contracts should be awarded to the packages to the extent that satisfies the aggregate qualification criteria only. Such a stipulation should be pre- disclosed  in  the  bidding  documents  to  have  a  clear  idea  of  contract awarding process.

The minimum qualification criteria for goods bid document should include the following:

  • The bidder should be a manufacturer, who must have manufactured,

tested and supplied the equipment up to specified percentage (usually not less than 80%) of the quantity. The equipment produced must be of similar type and size as specified in Schedule of Requirements.

  • The equipment offered for supply must be of the most recent series models. These models must have capacity to incorporate any new improvements in design. The equipments that are supplied must provide satisfactory operation for a specified duration.
  • Bidders who are authorised representative or agent of a manufactures should submit bids only if they meet the above stipulated criteria requirements.
  • The bidders selected as authorised agents must have supplied, installed, commissioned the equipments or requirements similar to that of requirements specified in the Schedule of Requirements. These equipments must provide satisfactory operation for a specified duration.
Posted Date: 9/28/2012 3:16:15 AM | Location : United States

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