Introduction

Every government tender is evaluated on two stages: the technical bid and the financial bid. Winning requires excelling at both.

Technical Bid: Demonstrating Capability

A technical bid is the first stage of tender evaluation. Authorities assess whether you are technically qualified to execute the project.

Typical Components:

• Company registration certificates, licenses
  
  

• Past project experience (completion certificates)
  
  

• Methodology, work plan, resource allocation
  
  

• Proof of equipment/machinery ownership
  
  

• Quality assurance and safety procedures
  
  

Pro tip: Many bidders are rejected here due to missing documentation, not lack of competence.

Financial Bid: Pricing Smartly

Once a company clears the technical stage, their financial bid is opened.

What It Includes:

• Quoted project price
  
  
  

• Detailed BOQ (Bill of Quantities)
  
  
  

• Breakdown of material, labor, and overhead costs
  
  
  

• Taxes, GST, and duties
  
  
  

Evaluation Method:

Most tenders follow L1 bidding (lowest cost wins). However, in EPC and Smart City projects, Quality-cum-Cost Based System (QCBS) is gaining traction, where both technical score + financial score determine winners.

Why Both Stages Matter

• Fail technical → financial never opened
  
  
  

• Fail financial → technical expertise wasted
  
  

The best bidders strike a balance: solid documentation + realistic costing.