Mastering Nepal's Public Procurement Act (PPA) Guidelines
Successfully submitting a tender through the e-GP system of Nepal (Bolpatra) requires strict adherence to the financial criteria set by the Public Procurement Act (2063) and Public Procurement Regulations (2064).
1. How to Calculate Bid Capacity in Nepal
Assessed Bid Capacity = (7 × A) - B
- A (Average Turnover): The Average Annual Construction Turnover of the best 3 years out of the last 10 fiscal years.
- B (Existing Commitments): The total remaining monetary value of ongoing construction works.
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2. Bid Security Requirements
Bid Security = 2.5% to 3% of Estimated Cost
3. Performance Security & The 85% Rule
- Standard Bid (≥ 85% of Estimate):
Performance Security = 5% of Bid Price - Low Bid (< 85% of Estimate):
Performance Security = 5% of Bid Price + 50% of (85% of Estimate - Bid Price)