Legal, financial and technical qualification documents, experience certificates and guarantees under Law No. 4734.
Taking part in public tenders is not just about bidding low; first you must meet the qualification conditions required in the tender documents. Law No. 4734 on Public Procurement and the related regulations require bidders to prove their legal, technical and financial qualification with documents.
Core qualification documents
- Legal qualification: Trade registry certificate, signature circular, and documents showing no tax or social security debt.
- Financial qualification: Balance sheet and income statement, bank reference letter, turnover information. The authority may limit some of these documents according to the work being tendered.
- Technical qualification: Experience certificate (in similar works), equipment and personnel undertakings, quality certificates.
Why is the experience certificate important?
In construction works, the most critical document is the experience certificate. Contracts obtained in works defined as similar in the tender documents and whose acceptance is complete are taken as the basis. The certificate amount must meet the ratio of the price stated in the tender documents. Remember that the certificate is brought to current value with an update coefficient (index).
Guarantees
When entering a tender, a provisional guarantee of at least 3% of the bid price is given. When signing the contract, a final guarantee of 6% of the contract price is requested. Guarantee letters can be provided with items listed in the law, such as bank guarantees or Treasury bonds.
Abnormally low tenders
Tenders much lower than the approximate cost are subject to an 'abnormally low' inquiry. If the bidder cannot explain the realism of its unit costs with analyses, the tender may be rejected. When preparing a bid, it is therefore necessary to document real savings arising from efficiency rather than making a discount detached from market prices.
Joint ventures and subcontractors
Firms without sufficient experience on their own can form a joint venture. The use of subcontractors is possible within the limits in the tender documents and with the authority's approval.
This article is general information; each tender's own documents are binding. We recommend following current legislative changes through EKAP and Public Procurement Authority announcements.
Practical preparation tips
Keep your documents current throughout the year: the trade registry gazette, signature circular, statements of no tax or social security debt and experience certificates should be ready quickly when the tender notice appears. Complete e-signature and system authorisation in advance for electronic bidding on EKAP. Read the administrative specification and unit price descriptions in the tender documents line by line; the time for clarification requests is limited.
Making a site visit before bidding and preparing your cost analyses in detail is your strongest defence in an abnormally low tender inquiry.
