- Prequalification

Prequalification is an evaluation process conducted by the announcing body before opening the submission of offers in a tender to verify the potential competitors' ability to execute the project or deliver the required services. This phase is considered a necessary step to ensure the participation of only qualified companies, saving time and effort during the final evaluation process.

Objectives of Prequalification

1. Determine Competence: Ensure that competitors have the technical and financial resources to execute the project.
2. Reduce Risks: Exclude unqualified companies before entering the detailed evaluation process.
3. Enhance Competitiveness: Focus on competitors with strong experience and qualifications.

Prequalification Requirements

• Submission of legal documents such as commercial registration and certification of registration.
• Recent financial reports demonstrating the financial capability to execute the project.
• A list of similar previous projects, supported by completion certificates.
• Information on available technical and human resources.

Steps of Prequalification

1. Setting Qualification Criteria: The announcing body determines the criteria that competitors must meet.
2. Announcing the Request for Qualification: The process is announced, and companies are invited to apply.
3. Initial Evaluation: Review the submitted documents and ensure they meet the requirements.
4. Issuance of a Shortlist: Only qualified companies are invited to submit their offers.

Benefits of Prequalification

1. Improving Quality: Ensuring participation from companies capable of executing the project.
2. Saving Time and Resources: Reducing the number of offers that need detailed evaluation.
3. Increasing Confidence: Enhances the integrity of the process and ensures transparency.

Challenges Associated with Prequalification

• Increased Time Costs: Prequalification requires additional time before beginning the tender process.
• Possibility of Objection: Excluded companies may object if they feel the evaluation was unfair.
• Restricting Competition: It can lead to a reduction in the number of participants, especially if the criteria are too stringent.

Prequalification is a strategic tool in tenders, enabling the announcing body to focus on the best suppliers and contractors capable of meeting project needs.