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Pre-Qualification (PQ)

The process of detailed assessment of relevant experience and capabilities and selection of potential Tenderers who would be invited to Tender is known as Prequalification.

The aim of Prequalification is to assess and pre select potential Tenderers with necessary capabilities to meet requirements. The exercise should be conducted in a way that the Client is able to assesses Contractors capabilities with respect to the proposed Contract such as their intention to participate in a Tender, capability and capacity (financially and otherwise) to execute the Contract, organizational strength, and other issues, thru a structured questionnaire. Normally Tenderers are sent a 1-2 page questionnaire with brief details of the proposed Contract seeking:

  • Expression of interest in Tendering for a specific requirement.
  • Details of Tenderers resources and facilities such as offices, workshop facilities, computer aids, programs, etc.
  • Details of any of Contractors branches that could be of value.
  • Past experience of executing similar Contracts in the last 3-5-7 years.
  • Details on technical as well as other manpower available.
  • Plant and equipment details.
  • Tenderers Risk handling and management policy.
  • HSE - information on past safety and environmental records.
  • QA/QC.
  • Financial strength / stability.
  • Other relevant issues.

The evaluation of responses is done based on approved criteria.

The criteria should be approved prior to receipt of responses from companies or at least prior to commencement of the evaluation of responses.

The criteria is arrived at by breaking down all factors that are needed to be assessed first by assigning weights to such factors in relation to their relative importance with respect to the scope of proposed Contract with all weights adding up to a 100 %. Further, assessment of each element in the factors considered is carried out by assigning marks to each of the responses to arrive at numerical totals and the ones over a certain cut-off limit making it to the Tenderer list.

In large value complex Contracts the financial submissions should be evaluated by finance professionals and carry an appropriate weight in the criteria.

To avoid duplication of effort, information collected thru such a Prequalification exercise could be excluded from the ITT documents.

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