What is bid capacity and why it is required to be calculated ?

Question

Accepted Answer

Bid capacity is the maximum amount of bids a company can submit for a project based on their financial and resource capabilities.

Bid capacity is calculated to ensure that a company can fulfill the obligations of the contract if awarded.
It is determined by assessing the financial strength, resources, and past performance of the company.
Calculating bid capacity helps in avoiding situations where a company wins multiple contracts but cannot deliver on all of them.
It also helps in preventing overextension of resources and potential financial risks.
For example, a company with limited financial resources may have a lower bid capacity compared to a larger corporation with more resources.

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