What to check in a tender's eligibility criteria

1. Who may bid, and the registrations they need

Start with the kind of bidder the tender allows. Some tenders accept only manufacturers, only registered contractors of a stated class, only firms in a given state, or only firms on an empanelled list. Others allow dealers, joint ventures or consortia, and say how their experience and turnover are counted.

Then list the registrations asked for. Common ones are PAN, GST, Udyam, a portal registration and a digital signature certificate for the person who signs. Works tenders may also ask for a contractor registration or trade licence. Make sure the names on all of them match, because a mismatch between the GST and Udyam names is a common cause of queries.

2. Turnover, net worth and solvency

Buyers use financial conditions to judge whether you can carry the contract. Read each one for four things: the amount, which financial years count, whether it is an average or must hold in every year, and what proof is accepted.

• Turnover is usually an average over recent years, sometimes only from the relevant line of work. Proof is normally a chartered accountant's certificate or audited statements. Some buyers ask for a UDIN on the certificate.
• Net worth is often required to be positive, or above a stated amount, as at the last audited year. The bid document may define how to calculate it. Use its definition.
• Solvency certificates come from a bank, in a stated format, up to a stated amount and not older than a stated period.

If the last audited year is not yet complete, check whether the previous years are accepted. Do not guess.

3. Experience in similar work

The words that decide this condition are similar and completed. Read how the tender defines them: the nature of the work, the minimum value of one order or of all orders together, the period in which they were completed, and whether work that is still in progress counts.

The proof is usually work orders together with completion or satisfactory-performance certificates from the client. Check whether the client's certificate must be in a set format, and whether experience of a parent, group company or joint-venture partner can be used.

4. Product, certification and OEM requirements

For goods, look for certifications (for example ISO or BIS), test reports, a manufacturer's authorisation, and rules on whether a dealer may bid. Check the scope and date on each certificate, because a certificate that does not cover the product or has expired will not count.

An OEM authorisation is a letter from the manufacturer, usually in a stated format and sometimes specific to the tender. Getting it depends on someone else, so ask early.

5. Relaxations and preferences you can claim

Government buying rules give some bidders relaxations or preference. The three you will meet most are:

• MSEs registered on Udyam may be relieved of the EMD or the tender fee, and may get a preference or a relaxation in some conditions, under the Public Procurement Policy for Micro and Small Enterprises Order 2012.
• DPIIT-recognised startups may be relieved of prior experience, prior turnover or the EMD, subject to conditions, under the procurement rules of the Ministry of Finance.
• Local content preferences follow the Public Procurement (Preference to Make in India) Order 2017, which defines local suppliers by the share of local content in what they supply.

None of these is automatic. The bid document must offer the relaxation, and you must attach the right certificate or declaration. State buyers may follow different rules. If the document is silent, ask before the pre-bid date.

6. Declarations and conflicts

Most tenders ask you to sign statements: that you are not debarred or blacklisted, that you have no conflict of interest, that your documents are genuine, and sometimes an integrity pact. Buyers may also ask you to declare compliance with the Ministry of Finance order on bidders from countries that share a land border with India.

A false declaration can lead to rejection and to debarment. Whoever signs must know that the statements are true for the whole company, and that they have the authority to sign.

7. Put it in a table

For every condition, write one row: the requirement, the clause, your proof and whether it is met, partly met or not met. The rows that say partly met are the ones to look at twice.

• Dates: check the cut-off date for certificates and for the financial years.
• Scope: check that the certificate covers this product, service or category of work.
• Signatory: check who must sign, and that the authority letter is current.
• Version: check that you are reading the latest version, since a corrigendum can change eligibility.

8. What to do about a gap

If you fail a condition, you have four options. Ask the buyer to clarify, in writing, before the pre-bid date, if the condition is unclear or looks wrong for this purchase. Team up through a joint venture or a consortium, but only if the tender allows it and says how experience is counted. Get the missing proof, such as an OEM letter, if there is time. Or do not bid, and use the time on a tender you can win.

Tenderlytix helps with the first read. It lists the eligibility conditions of a tender PDF with the line each came from, and in the workspace it compares them with your company profile. It cannot tell you whether a certificate will be accepted, so check the proof against the bid document. Try the free tender check.