Rural Works Department Tender

The bid capacity required in the given tender to bid is calculated using the formula: Assessed Available Bid Capacity = ( A*N*M - B ) where A = Maximum value of civil engineering works executed in any one year during the last five years (updated to the price level of the last year at the rate of 8 percent a year) taking into account the completed as well as works in progress. N = Number of years prescribed for completion of the works for which bids are invited (period up to 6 months to be taken as ½ and more than 6 months as 1 in a year). M = 2 or such higher figure not exceeding 3 as may be specified in the Appendix to ITB. B = Value, at the current price level, of existing commitments and on-going works to be completed during the period of completion of the works for which bids are invited. Additionally, bidders must have access to financial resources equivalent to at least 10% of the contract value. Therefore, the bid capacity required includes both the assessed available bid capacity calculated using the given formula and the minimum financial capacity of 10% of the contract value.