01
Is a JV or consortium allowed?
Look for an express permission or prohibition in the bid data sheet, eligibility section and JV annexure. Silence should not be treated as permission. When JV is prohibited, evaluate the bidding entity on its own and treat unrelated JV annexures as non-applicable only after reconciling the whole document.
Practical checks
- Identify the controlling document hierarchy.
- Record explicit permission, prohibition or unresolved ambiguity.
- Do not infer JV status from a generic company-type form.
Questions answered in this section
- Is joint venture allowed?
- Is consortium allowed?
- What if the tender is silent about JV?
- Where is JV permission stated?
- Why is a JV annexure present when JV is prohibited?
- Can a partnership be treated as JV?
- Is type of firm enough to decide JV?
- Can JV clauses conflict?
02
Lead partner, shares and combined credentials
Permitted JVs commonly specify the maximum number of partners, lead-member share, individual minimum shares, joint and several liability and which experience or financial criteria may be combined. Some requirements must be met independently by the lead member.
Practical checks
- Use the prescribed JV agreement or undertaking.
- Verify each partner against its individual obligations.
- Align power of attorney, shareholding and bid security names.
Questions answered in this section
- How many JV members are allowed?
- What share must the lead partner hold?
- Can partners combine turnover?
- Can partners combine experience?
- Must lead partner meet similar work alone?
- Does JV need incorporation before bidding?
- Is an MOU sufficient?
- Who signs for the JV?
03
Security, membership changes and subcontracting
The tender determines whether bid security is issued in the JV name, lead-member name or names of all members. Changes to composition after submission are generally restricted. Subcontracting is different from JV participation and does not automatically transfer qualification experience.
Practical checks
- Follow the exact beneficiary, applicant and validity format for guarantees.
- Disclose subcontracting only as permitted.
- Do not assume subcontractors satisfy bidder eligibility.
Questions answered in this section
- Who provides JV EMD?
- Who provides JV performance guarantee?
- Can one company join multiple JVs?
- Can JV membership change?
- What if a JV partner defaults?
- Is subcontracting allowed?
- Which work may be subcontracted?
- Does subcontractor experience count?
04
How bid capacity is calculated
A common works formula is A × N × M − B, but the tender controls every definition. A is typically the highest annual value of eligible work, N the completion period expressed in years, M the stated multiplying factor and B the value of commitments to be completed during the relevant period. Use the clause’s rounding, escalation and time-window rules.
Practical checks
- Do not substitute turnover for executed-work value unless allowed.
- Update ongoing commitments to the required price level.
- Attach the prescribed statement and supporting certificates.
Questions answered in this section
- How is bid capacity calculated?
- What is A in bid capacity?
- What is N?
- What is multiplying factor M?
- What is B?
- Which ongoing works go in B?
- Can bid capacity be negative?
- Can wrong commitments cause rejection?
Official sources and further reading
Reviewed against the cited sources on 27 September 2026. Requirements can change and the specific tender document remains controlling.