Pre-qualification is the
process of up-front identification of best of rest suppliers able to compete for specific types of contract
opportunities. Prequalified suppliers are those whose record of performance in
the marketplace, whether commercial or governmental, demonstrates their ability
to perform to consistently high standards of quality and reliability. Selection of the right suppliers is very critical process. Having
the right choice of suppliers reduces operational risks. Prequalifying
suppliers enhances competition, ensures quality performance, and can also
shorten cycle time and strengthen relationships between the buyers and its
suppliers.
Suppliers benefit from having a more comprehensive opportunity to familiarize themselves with the buyer organization requirements.
Prequalification may be used:
On an ongoing basis for
commercially available goods or services purchased
routinely or For an individual purchase or for a series of
purchases.
One of the important advantage of
pre-qualification is to reduce the need to evaluate unqualified contractors. It
is way of diminish the field to only those who have the vital ability to comply
with the terms of the contract and the financial capability to undertake the
work.Thus for certain contracts, particularly large contracts or those
involving highly technical work, a procurement entity will before advertising
for bidders for the contract, first ask for invitations for pre-qualified
bidders.
Prequalification allows for unqualified bidders to stay out and thus helps to
speed up evaluation of bids since only a limited number of pre-qualified bids
have to be examined. This means that only those firms pre-qualified would be
eligible to bid on the contract. The prequalification is merely for companies
to demonstrate that they have the ability to undertake the work or supply of
whatever it has to be sourced.
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