​​​​​Evaluation & Qualification Criteria

In initial phases Evaluation and Qualification Criteria (EQC) was adopted as per harmonized document in accordance with ADB guidelines, but they were updated and modified from time to time based on the experience gained from previous contracts. Some of the salient features of EQC are as under:
• 1. JVs: Initially, JVs were required to meet EQC through all partners combined and one of the partner was required to meet 50% of the requirements who may not be the lead partner. The experience of this arrangement showed that the partners who met most of the EQC requirements at the time of the bidding became sleeping partner during execution of work and some of the other minor partner became the lead partner who was unable to handle the project properly due to lack of experience and financial capability. Based on this experience the EQC was modified that each JV partner has to meet certain eligibility criteria in order to become JV partner. With this provision each partner has clear cut responsibility and avoids participation of sleeping partner in execution.
• 2. Average Annual Construction Turnover: Initially the requirement of average annual construction turnover for the last three years was kept equal to 1.5 V/T. Later on it has been upgraded to 2 V/T and it was also stipulated in this qualification criteria that the lead partner has to meet minimum 70% of the requirement. This ensures capable agency only shall be eligible to become lead partner. (V= Estimated Value of Tender; T= Stipulated Time of Completion).
• 3. Net Worth: Initially for Contracts costing more than Rs 20 Crore but up to Rs 100 Crore requirement was kept equal to 20% of the estimated bid price and for Contracts costing more than Rs 100 Crore requirement was kept equal to 10% of the estimated bid price or Rs 20 Crore which ever was more and requirement to be met by all partners combined. This requirement has been upgraded to 20% of the estimated cost of tender for all values of work, out of which 80% has to be met by the Lead partner.
• 4. Bid Capacity: Available Bid Capacity= (AxNx2.0-0.25xNxB) should be more than estimated bid price where i. A= Max value of work executed in any one year during the last five years. ii. B= Total value of existing commitments. iii. N= Number of years prescribed for completion of the work. Initially the requirement was to be met by all partners combined in case of JV. Later on it has been specified that lead partner has to satisfy minimum 70% of the requirement to ensure that lead partner has available capacity to execute this work.
• 5. Specific Construction Experience for ‘Contracts of Similar Size and Nature’: Initially, the value of contract of similar size and nature was being kept as completion of one work of 0.35V which has now been changed in upward direction for making the requirements stringent as one work of 0.6V or 2 works of 0.35V each. It has been made mandatory that this requirement has to be met by the lead partner. Similar work here shall be that which includes at least one of the quantities of key activities indicated below:
  • ·Construction experience in key activities: Main activities 2 to 5 were listed mentioning 35% of the quantities involved in those items. This requirement has been upgraded to 50% of the quantities involved in case of single work and 25% of the quantities involved in each work in case of two works as specified above. Initially the requirements of Signaling and OHE works were also permitted to be met through specialist sub-contractors. Based on experience it was observed that sub-contractors which were proposed at the time of bid were not available during actual execution and these works were not getting the attention considering their importance. These two requirements were thus mandated to be met by JV partners.