Directorate Of Urban Local Bodies 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 per cent 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 half-year and more than 6 months as one year). M = 2.5 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. The bidder must demonstrate having experience and resources sufficient to meet the aggregate of the qualifying criteria for the individual contracts. The available bid capacity should be equal to or more than the total bid value. However, other sources do not provide the exact formula or value for bid capacity, instead, they mention that the Bidder is required to furnish a Bid Capacity Calculation sheet, and the bidder must be satisfied that he/she has sufficient bid capacity to execute the work. But one source does provide the formula.