Question

Advantages and disadvantages of prequalification procedure for tenders and contracts

Answer 1

Prequalification refers to a process through which a buyer business screens seller business to assess their capabilities to effectively deliver on a tender awarded.

Advantages of prequalification

1. Reduces the number of tender documents that the buyer company will receive as only prequalified companies can tender for a contract.

2. Enables the buyer company to identify firms that have the necessary capabilities e.g. financial or expertise to deliver on particular tenders.

Disadvantages of prequalification

1. Companies have a smaller pool of bidders leaving out others who could have better methods and technologies but could have been kicked out during prequalification.

Answer 2

“Prequalification” tends to a process at which a buyer “business screens” the “seller business” to do assess in their abilities to be effectively delivered on the tender awarded.

Advantages of prequalification:

1.     It lets the buyer company to know the firms that they have capabilities that are necessary.

2.     It also reduces the tender's documents that the customer or buyer company will receive.

Disadvantage of prequalification:

1.     Companies have “smaller pool of bidders” leaving out of others who can have better methods and “technologies” but it could have kicked out during “prequalification”.