Rural Works Department Tender

The bid capacity required in the given tender to bid can be 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 financial years, updated at 8% per year to the price level of the preceding financial year. 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 = 3 B = Value of existing commitments and on-going works to be completed during the period of completion of construction work for which bids are invited. Additionally, the bid capacity required includes: 1. Achieved in any one year a minimum annual financial turnover of 60% of the amount put to bid (as certified by a chartered accountant, and at least 50% of which is from civil engineering construction works). The amount put to bid would not include maintenance cost for 5 years. The turnover will be indexed at the rate of 8% for a year. Formula: Minimum annual financial turnover = 60% of (Amount put to bid - Maintenance cost for 5 years) Indexing: 8% per year 2. Satisfactorily completed, as prime contractor or sub-contractor, at least one similar work of value not less than 30% of the amount put to bid (excluding maintenance cost for five years). Formula: Similar work value ≥ 30% of (Amount put to bid - Maintenance cost for 5 years)