Chennai Port Trust Tender

Class I and Class II local suppliers.

Bid capacity is calculated using the formula: Bid capacity = (A x N x 1.5) - B. Here, 'A' represents the maximum value of works executed in any one year during the last seven financial years at the current price level. This value is obtained by enhancing the actual value of work at a simple rate of 7% per annum from the date of completion to the date of bid opening. 'N' denotes the number of years prescribed for the completion of the subject contract. 'B' signifies the value at the current price level of existing commitments and ongoing works to be completed in the next 'N' years. The multiplier factor used in the calculation is 1.5. To calculate bidding capacity, the updated value of turnover is applied by using a multiplication factor, with 'N' being the number of years, typically 1.00, and 'B' being the existing commitment calculated from column 4 multiplied by column 8 divided by 100. The maximum turnover in construction works executed in any one year during the last 7 years is necessary for calculating the bidding capacity, with the value of completed works adjusted to the current costing level by enhancing at a simple rate of 7% per annum.