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Bid Capacity Calculator

Check whether your available bid capacity covers a works tender, using the (A × N × M) − B formula found in most works tenders.

The best of the years the tender looks back over, updated to today's price level.

Work in hand to be completed during the same period. Leave blank if none.

To see whether your capacity covers it.

Your bid capacity

Enter the highest value of work you completed in one year to see your available bid capacity.

Common questions

What is bid capacity?
Bid capacity is a measure, used in works tenders, of how much new work a contractor can take on. A bidder qualifies only if the assessed available bid capacity is at least the estimated cost of the work being tendered.
How is bid capacity calculated?
Most works tenders use: 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, updated to the current price level. N is the number of years allowed to complete the work being bid for. M is a multiplier stated in the tender. B is the value of existing commitments and ongoing works to be completed during that same period.
What value of M should I use?
Use the multiplier stated in the tender you are bidding for. Values of 2, 2.5 and 3 are common, and the figure differs between departments and between tenders.
How do I update past work to the current price level?
Tenders that ask for this give a table of yearly factors, and each past year's turnover is multiplied by its factor before the highest year is picked. Enter the updated figure as A here. If the tender gives no factors, use the certified figures as they are.
What counts as existing commitments?
The balance value of works already awarded to you, or in progress, that falls due during the completion period of the new work. Tenders usually ask for this in a statement certified by the engineer in charge of each ongoing work.

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