A Guide to Financial Turnover Requirements in Tenders

One of the first things a bidder checks in a Notice Inviting Tender (NIT) is the financial criteria. If you don't meet the turnover requirements, your bid will be rejected.

Average Annual Turnover

Most tenders require your Average Annual Financial Turnover over the last 3 financial years to be a certain percentage (often 30% to 50%) of the estimated project cost. This must be certified by a Chartered Accountant.

Experience Criteria

Alongside turnover, buyers look for 'Similar Work Experience'. Usually, the rule of thumb is that you must have completed:

• Three similar works costing not less than 40% of the estimated cost, OR
• Two similar works costing not less than 50% of the estimated cost, OR
• One similar work costing not less than 80% of the estimated cost.

Forming Joint Ventures (JVs)

If your firm falls short of the financial criteria, many large tenders allow the formation of Joint Ventures or Consortiums. By partnering with another firm, you can combine your financial strengths and experience to become eligible.