Bid validation is a
term mainly used in the domain of tender process. It is a process
where we scrutinize and compare the bids to select the best
offer in the field of work, services etc. Best offers
means that lowest rate offered by contractor. The steps to validate
a bid estimate are given below.
- Preliminary
examination: In this stage, the basic requirments to
perticipate this bid process is examined. The documents i.e. tax
paper, PAN etc are checked throughly. If any bid is not fulfill the
specified requirment, then that will not be evaluated for further
process.
- Technical requirment
examination: In this stage, the credential papers related
their work are throughly checked. what type of works they have
done, time of completion of project, quality assurance
certificate.If any bid is not fulfill the technical requirment,
then that will not be evaluated for financial examination.
- financial
examination: In this stage, ranking will be done bwetween
the bidders based on their offered rate. The less percentage rate
is also evaluated on the basis of market price.
After all mentioned process, the
work order will be given to the lowest bidder. Some time post
qualification is also done for lowest bidder which is based on the
criteria given in bid document.