Common use of Bid Capacity Clause in Contracts

Bid Capacity. Applicants who meet the minimum qualification criteria will be qualified only if their available bid capacity at the expected time of bidding is more than the total estimated cost of the works. The available bid capacity will be calculated as under: Assessed Available Bid Capacity = (A*N*2-B), where A = Maximum value of works executed in any one year during the last five years (updated to the current price level) rate of inflation may be taken as 10 per cent per year which will take into account the completed as well as works in progress; B = Value at current price level of the existing commitments and ongoing works to be completed during the next one year (period of completion of works for which bids are invited) and N = Number of years prescribed for completion of works for which the bids are invited. Note : In case of a Joint Venture, the available bid capacity will be applied for each partner to the extent of his proposed participation in the execution of the works.