By Adv. Gaurav Kumar, Founder, Bid Nexa · Advocate, High Court of Jharkhand · General information, not legal advice for a specific case.
Before preparing any bid, check ten things: eligibility, capacity, delivery location, margin after all costs, payment terms, EMD and security cash, penalties, competition, buyer track record and your team's time. If eligibility fails, stop. If three or more of the others look weak, consider passing.
The 10 checks
- Eligibility: turnover, experience, registrations and certificates all met
- Capacity: you can deliver the quantity on time
- Location: delivery or work sites are within your reach
- Margin: price still works after freight, warranty, taxes and statutory costs
- Payment terms: you can carry the payment cycle
- Cash: EMD and performance security are affordable
- Penalties: liquidated damages and penalties are acceptable
- Competition: you know who usually bids and wins
- Buyer: the buyer's payment and inspection record is reasonable
- Time: your team can prepare a clean bid before closing
Scoring it
Give each point a simple green, amber or red. Any red on eligibility means no-bid. Three or more ambers usually mean the effort is better spent elsewhere.
Why it pays
Bidding for fewer, better-matched tenders usually improves win rates and margins. It also keeps your team fresh for the tenders that matter.
Make it a habit
Use the same checklist for every tender and record the reason for each decision. After a few months, the record shows which buyers and categories suit you best. Confirm in the tender document / NIT.
Frequently asked questions
What is a bid or no-bid decision?
It is the decision, made early, on whether a tender is worth bidding for, based on eligibility, capacity, margin and risk. It prevents wasted effort on tenders you cannot win or cannot deliver profitably.
Who should make the bid or no-bid call?
Someone who understands both operations and finance, usually the owner or a senior manager, using a fixed checklist so decisions are consistent.
Can Bid Nexa make the decision for me?
We give a written bid or no-bid view with reasons as part of bid management. The final decision always stays with you.
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