01
What counts as similar work?
The tender’s own definition controls. Match the completed project’s nature, components, client type, scale, value, completion period and stated special attributes. Keyword similarity in a certificate is insufficient when the clause requires specific structural, service or performance components.
Practical checks
- Quote the exact definition before evaluating certificates.
- Use completion evidence issued by the eligible client authority.
- Do not merge unrelated projects unless the clause expressly permits it.
Questions answered in this section
- What does similar work mean?
- How is similar work interpreted?
- Must completed work match every component?
- Is private-sector experience accepted?
- Is another state experience accepted?
- Can subcontractor experience count?
- Can related-company experience count?
- Can proprietor experience transfer to a company?
02
Understanding the 40/50/80 formula
A common formulation asks for three completed works each meeting 40% of estimated cost, two each meeting 50%, or one meeting 80%. These are alternative routes only when the clause says so. The work must also satisfy the similar-work definition, prescribed time window and evidence conditions.
Practical checks
- Calculate thresholds from the tender’s stated base value.
- Verify successful completion within the eligible period.
- Apply any stated cost-index escalation exactly.
Questions answered in this section
- What is the three works 40 percent rule?
- What is two works 50 percent?
- What is one work 80 percent?
- Are 40 50 80 alternatives?
- Can ongoing work count?
- Is a work order enough?
- What must a completion certificate show?
- Does partially completed work qualify?
03
Average annual turnover
Calculate turnover using the financial years and business scope specified in the tender. The authority may require total turnover or turnover specifically from construction, services or the relevant activity. Audited statements and CA certificates should reconcile; unexplained differences invite clarification or rejection.
Practical checks
- Use completed financial years stated in the bid.
- Do not substitute gross receipts without checking the definition.
- Support every figure with the required certification.
Questions answered in this section
- How is average annual turnover calculated?
- Is turnover for three or five years?
- Which financial years apply?
- Is GST included in turnover?
- Must turnover be from the same business?
- Can group turnover be used?
- Can JV members combine turnover?
- What if one financial year is unavailable?
04
Net worth, profitability and solvency
Positive net worth, PAT, working capital, solvency and credit facility test different aspects of financial capacity. Follow the exact formula, period and certificate format in the tender. A loss in one year may or may not disqualify the bidder depending on whether the clause requires each year to be positive or limits the number of loss years.
Practical checks
- Read whether the condition applies annually or in aggregate.
- Check certificate recency and issuing-bank requirements.
- Keep calculations traceable to audited accounts.
Questions answered in this section
- What does positive net worth mean?
- How is net worth calculated?
- Can a loss-making company qualify?
- What does positive PAT mean?
- How is working capital assessed?
- What is bank solvency?
- What is unutilized credit?
- Is solvency the same as a credit facility?
Official sources and further reading
Reviewed against the cited sources on 27 September 2026. Requirements can change and the specific tender document remains controlling.