prequalification

Prequalification is the first step in many tender procedures, where the contracting authority assesses whether suppliers are qualified to participate in the actual competition. This is done to ensure that only suppliers who meet fundamental requirements are allowed to participate, saving time for both the contracting authority and suppliers.

How does prequalification work?

In a tender procedure with prequalification, suppliers must first demonstrate that they meet specific qualification criteria. These may include requirements for:

• Financial capacity (e.g., minimum turnover)
• Technical qualifications (e.g., relevant experience)
• Professional qualifications (e.g., necessary certifications)

Once the contracting authority has evaluated all applications, they select a limited number of suppliers who are invited to participate in the main competition. This number must be large enough to ensure genuine competition, typically at least three suppliers.

Practical example

A hospital needs to build a new department and chooses to conduct a prequalification. In the notice, they set the following requirements:

• Minimum annual turnover of NOK 100 million
• Experience from at least three similar projects in the last five years
• ISO certification in quality and environment

Out of 15 interested suppliers, perhaps only 6 meet all the requirements. These are then given the opportunity to participate in the actual tender procedure.

Tools like Cobrief can help suppliers keep track of relevant prequalifications and ensure that all necessary documentation is in place when submitting an application.

Prequalification is particularly common in large or complex projects where the contracting authority wants to ensure that suppliers have the necessary capacity and expertise before spending resources on evaluating detailed bids. This saves time for all parties and increases the chances of a successful project delivery.