PPR 2008 Rule 95Financial Capacity (Works)

Rule 95 sets the financial capacity requirements for works contracts. The bidder's average annual turnover over the last 3 to 5 years must be at least equal to a specified multiple of the estimated tender value — commonly 0.5 to 1.5 times. The bidder must also demonstrate working capital adequacy, typically equal to 2-3 months of estimated cash flow on the contract, evidenced by a bank solvency certificate from a scheduled bank. For very large works the procuring entity may also require disclosure of any pending litigation, defaulted contracts, or insolvency proceedings. Audited financial statements for the look-back period are mandatory and must be filed in the bid envelope.