What is H1?
Highest bidder
H1 is the highest bidder in a tender or auction where the buyer earns money, such as a scrap sale or revenue contract, and usually wins the award.
What is H1?
H1 stands for the highest bidder. It is used when a government body or PSU is selling something or granting a right, rather than buying. In these tenders the organisation earns money, so the highest offer is the best one.
Bids are ranked H1, H2, H3 and so on, in the same way that purchase tenders rank bidders L1, L2 and L3.
Where H1 is used
H1 evaluation is common in sale and earning tenders, and often in e-auctions run on dedicated auction portals.
- Sale of scrap, surplus stores or old vehicles
- Leasing or licensing of space, such as shops, parking or advertising sites
- Revenue-sharing or licence fee contracts, such as catering or vending
- Disposal of assets through forward auctions
How it is used in evaluation
As with L1, eligibility and any technical conditions are usually checked first. The highest offer among qualified bidders is then ranked H1. Many sale tenders also set a reserve or base price, and the buyer may decline to award if the H1 offer is below it.
The tender decides what counts in the evaluated amount, such as taxes, so check the tender document before you bid.
Common questions
Common questions about H1 in government tenders.
L1 is the lowest bidder and is used when the organisation is buying. H1 is the highest bidder and is used when it is selling or earning revenue.
Not always. The buyer may reject an H1 offer that is below the reserve price or fails the tender conditions, or may cancel the sale.
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