What is PQ criteria?

What are PQ criteria?

Pre-qualification criteria, often called PQ or eligibility criteria, set the minimum standard a bidder must meet. A bid that fails any PQ condition is usually rejected without its price being considered.

PQ can be checked in a separate pre-qualification stage before bids are invited, or as the first step of technical evaluation in a two-bid tender.

Common PQ criteria

Each tender defines “similar work” in its own way. Read that definition closely; it decides which of your past contracts count.

• Minimum average annual turnover over recent years
• Experience of similar work, often stated as one, two or three completed works of set values
• Net worth, solvency or bank certificates
• Registrations such as GST, PAN, Udyam or a contractor class
• Certifications, test reports or OEM authorisation
• A declaration that the bidder is not blacklisted or debarred

Tips for bidders

Map every PQ condition to a document before you start pricing. Use completion certificates from clients, with values and dates, as the tender asks; work orders alone may not be accepted.

If a condition looks too narrow, raise it at the pre-bid meeting, as buyers sometimes relax PQ through a corrigendum. Also check whether MSE or startup relaxations apply to you.