This video highlights the benefits of prequalification and how it can be applied to ADB funded projects.
What is Prequalification and when does it apply?
Prequalification is a process associated with open competitive bidding, wherein the borrower assesses the suitability of applicants for a specific contract before inviting them to submit bids.
It is generally best suited for large, complex projects that require bidders to have adequate financial capability, a proven track record of performing similar works or services, and a high degree of specialization and experience.
What are the benefits of Prequalification?
Screening applicants based on specific project criteria can contribute to better quality and can lower the risk of nonperformance by the winning bidder.
Limiting bid participation to only prequalified applicants also eliminates the need for the borrower to evaluate bids from unqualified bidders, reducing the likelihood of abnormally low bids, technical noncompliance, and allowing for a more streamlined evaluation process.
What is the objective of Prequalification?
To ensure an efficient and manageable evaluation process, ADB’s procurement regulations allow the borrower to limit the number of prequalified applicants depending on the country, its market conditions, and the exact needs of the project.
ADB’s Guidance Note aims to help borrowers conduct prequalification in the procurement of large and complex goods, works, and services contracts.