Eligibility Criteria in Works Tenders

 Eligibility Criteria in Works Tenders

(Source: Para 10, Part I of GCC Works, 2022 – April)

Three Types of Eligibility Criteria

1. Technical Eligibility Criteria

2. Financial Eligibility Criteria

3. Bid Capacity

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Difference Between Technical & Financial Eligibility

Criteria	Basis	Consideration
Technical	Similar Works	Considers only similar nature of works completed.
Financial	All Works	Considers all works, including similar ones.

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Bid Capacity

Indicates the contractor’s financial ability to execute large-value projects (₹20 crore & above).

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1. Technical Eligibility Criteria

Condition:
Tenderer must have successfully or substantially completed similar works in the last 7 years (ending last day of month before tender invitation).

Definition: “Substantially Completed”

Work in progress where:

• ≥ 90% payment of contract value made (excluding PVC adjustment).

• No termination proceedings on contractor’s default.

• Credential issued within 60 days before date of tender invitation.

Example:
If tender invited on 06.02.2019, last 7 years considered: 01.02.2012 – 31.01.2019.

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Work Completion Requirements (Similar Works)

No. of Similar Works	% of Advertised Value
3 Works	≥ 30% each
2 Works	≥ 40% each
1 Work	≥ 60%

Example:
For a ₹20 crore tender, eligibility can be:

• 3 works of ₹7 Cr, ₹7.5 Cr, ₹8 Cr (≥30%)

• 2 works of ₹8.5 Cr, ₹10 Cr (≥40%)

• 1 work of ₹12 Cr (≥60%)

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Other Key Points

• For works up to ₹50 lakhs → Technical & Financial eligibility not required.

• For composite works (Civil, Electrical, S&T etc.):

  • Separate completed works of required value for each component are accepted.

  • Each component’s value must be clearly defined in tender documents.

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Subletting – Technical Eligibility

• Sub-contractor must have completed similar work costing ≥ 35% of sublet value in last 5 years.

• For subletting ≤ ₹50 lakhs → no prior experience required.

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Work Experience Certificates

Issued By	Acceptability	Conditions
Private Individual	❌ Not considered	—
Public Listed Company	✅ Considered	Avg. annual turnover ≥ ₹500 Cr in last 3 FYs, listed on NSE/BSE ≥ 5 yrs before tender closing.

Documents Required (by Contractor):

• Work order copy

• BOQ & bill-wise payment details (CA certified)

• TDS certificates for payments received

• Copy of final/last bill paid

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2. Financial Eligibility Criteria

Requirement:
Tenderer must have Minimum Average Annual Contractual Turnover of
👉 V / N or V, whichever is less
(as per ACS–1 dated 14.07.2022)

Where:

• V = Advertised value of tender (₹ in crores)

• N = Number of years for completion of work

Calculation:
Average of total contractual payments in last 3 financial years (as per audited balance sheets).
If the last year’s balance sheet not ready → use 4th previous year.

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Example:
Tender value (V) = ₹20 Cr
Completion period (N) = 4 years
Financial years: 2015–16 (₹5 Cr), 2016–17 (₹8 Cr), 2017–18 (₹5 Cr)
Average turnover = 18 / 3 = ₹6 Cr

V/N = 20 / 4 = ₹5 Cr → (lesser of 5 or 20 = ₹5 Cr)
✅ Contractor eligible (has ₹6 Cr average).

Documents:

• Audited balance sheets certified by CA
  or

• CA certificate with audited balance sheets.

Note:
For works ≤ ₹50 lakhs → not applicable.

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3. Bid Capacity (Applicable for works ≥ ₹20 Cr)

Condition:
Available Bid Capacity ≥ Advertised Value of Tender

Formula:
[Available Bid Capacity} = (A × N × 2) – 0.33 × N × B ]

Where:

• A = Maximum payment received in any one FY in last 3 years (including WIP).

• N = Period (years) for completion of work.

• B = Value of existing commitments & balance works to be completed in next “N” years.

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Example:
Tender opening: 15.02.2019
Advertised Value = ₹100 Cr
N = 3 years

Year	Completed Works	WIP	Total
2018–19	₹15 Cr	₹5 Cr	₹20 Cr
2017–18	₹10 Cr	—	₹10 Cr
2016–17	₹25 Cr	—	₹25 Cr
→ A = ₹25 Cr (maximum)

B (existing commitments):

2019–20 = ₹5 Cr, 2020–21 = ₹7 Cr, 2021–22 = ₹3 Cr → B = ₹15 Cr

[{Bid Capacity} = (25×3×2) – 0.33×3×15 = 150 – 15 = ₹135 Cr]

✅ Eligible for tenders up to ₹135 Cr.

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Summary Table

Criteria	Applies To	Key Parameter	Example Requirement
Technical	All works > ₹50L	Similar Works	1×60%, 2×40%, or 3×30%
Financial	All works > ₹50L	Avg. Annual Turnover	V/N or V (whichever less)
Bid Capacity	Works ≥ ₹20 Cr	Financial Resource	(A×N×2) – 0.33×N×B ≥ V

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