Tender & bidding
Bid Capacity Calculator — Available Bid Capacity Formula (A × N × M − B)
Most government tenders only accept a bid if the contractor's available bid capacity is at least the estimated cost of the work. The standard formula is Assessed available bid capacity = (A × N × M) − B.
A is the highest value of works executed in any one year of the look-back period (usually the last five years, though some tenders use three or seven) brought to current prices, N is the number of years allowed to complete the work being tendered, M is a multiplier set by the department (1.5, 2, 2.5 or 3), and B is the value of existing commitments and ongoing works still to be completed in those N years.
A — Your turnover
Civil works turnover from your audited accounts. The best year, updated to today's prices, is used.
Years of turnover considered
Check the NIT — 5% to 10% a year (compounded) is common.
M and N
Both are stated in the tender's bid capacity clause.
Multiplier (M)
Months ÷ 12 — e.g. 18 months = 1.5
B — Work already in hand
Existing commitments still to be completed. We've added the unbilled balance of your active contracts.
No active contracts with a value yet — enter your commitments below.
Works in hand you haven't added as contracts, including bids already awarded.
Compare with a tender
Optional — see whether you can bid for it.
Available bid capacity
₹0
How this is worked out
Bid capacity = (M × A × N) − B. A is the highest civil-works turnover in the years the tender counts (usually the last five financial years; some use three or seven), brought up to current prices. N is the completion period of the tender in years. B is the value of existing commitments and ongoing works still to be completed in the next N years.
Strictly, B is only the part of each ongoing work due within N years. We use each active contract's whole unbilled balance (contract value minus payments received), which is the cautious figure — untick a contract if most of it falls later.
Tip
If you're short, a joint venture or finishing and billing an ongoing work first can raise your capacity.
Frequently asked questions
What is the bid capacity formula?
Assessed available bid capacity = (A × N × M) − B, where A is the maximum annual value of works executed in any one of the last five years updated to current prices, N is the completion period in years, M is the multiplier (often 2 or 2.5), and B is the value of existing commitments to be completed during the next N years.
What happens if my bid capacity is less than the tender value?
The bid is usually treated as non-responsive and rejected at the technical stage, even if your price is the lowest. Completing ongoing work or a higher year's turnover increases your capacity.
What value of M is used in bid capacity?
The department fixes it in the tender document. M = 2 and M = 2.5 are the most common; some tenders use 1.5 or 3. Always use the value written in the notice inviting tender — the calculator also accepts a custom value.
What is the bid capacity formula with M = 1.5?
Assessed available bid capacity = (A × N × 1.5) − B. It is used by some central institutions and state departments. For example, with A = ₹4 crore, N = 2 years and B = ₹3 crore, the capacity is (4 × 2 × 1.5) − 3 = ₹9 crore.
How many years of turnover are used to find A?
Most tenders take the best year of the last five financial years. Some use the last three years and others the last seven, each year escalated to current prices at the rate the tender gives (often 5%–10% a year). Pick the look-back period your tender states.
Figures are for planning. The conditions in your tender document or contract always take precedence.
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