Department Of Rural Development And Panchayats Tender

The bid capacity required can be determined using the following formulas: 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 simple interest a year) N = 1, if Completion time is more than 6 months, N=0.5 if completion time is less than equal to six months. M = 3 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, the bid capacity can also be related to the financial and investment capacities as follows: Financial Capacity = 0.10 * Tender Amount Investment Capacity = 0.30 * Estimated Cost These formulas indicate the minimum financial and investment capacities required for a bidder to participate in the tender. However, another formula related to the annual turnover is also provided: If the amount put to bid is Rs.200 lakhs and less, the bidder should have an annual turnover of at least 60% of the amount put to bid. If the amount put to bid is more than Rs. 200 lakhs, the bidder should have an annual turnover of at least 75% of the amount put to bid. Thus, the bid capacity required can be calculated using the provided formulas.