How is average annual construction turnover worked out?
In the World Bank's two-envelope works document (September 2025 edition, Section III), it is based on certified payments. You add the certified payments you received for contracts in progress or completed, over the stated years. Then you divide by the number of years.
For example, say you received 2 million, 3 million and 4 million over three years. Your average is 3 million. These figures are invented to show the arithmetic.
Payments you received count here, not contracts you signed. Keep your payment certificates.
What is the financial resources test?
This test is separate from turnover. You must show that you can reach enough money for this contract and your current works.
The document lists liquid assets, unencumbered real assets, lines of credit and other financial means. Contractual advance payments do not count.
How does the bid capacity formula work?
Published tender clauses often use this form: Assessed Available Bid Capacity = A × N × 2 − B. Your capacity should usually be at least the estimated cost of the work.
| Letter | What it means |
|---|---|
| A | The highest value of works you completed in any one year, in a stated look-back period, at current prices |
| N | The years allowed to complete the work you are bidding for |
| 2 | A multiplier. We also saw 1.5 and 2.5 in Indian tender notices. |
| B | The value at current prices of your existing commitments and ongoing works |
A worked example
Say A is 2 million, N is 1.5 years and B is 1 million. Then 2 million × 1.5 × 2 is 6 million. Take away 1 million, and your capacity is 5 million.
You could pass a tender with an estimated cost of up to 5 million. These figures are invented to show the arithmetic.
What if you fall short?
You have several honest options. Check that the tender allows each one.
- Bid a smaller tender or a smaller lot.
- Form a joint venture. The tender states what the members must meet together and alone.
- Finish current work first, because that reduces B.
- Arrange a line of credit for the financial resources test.
How can Bidligence help?
Bidligence records a tender's criteria and mandatory documents when it reads the pack. Its Company Vault keeps your records in one place. It does not audit your accounts, so your accountant should confirm your figures before you sign a form.
Questions
- Does the World Bank use the A × N × 2 − B formula?
- We did not find it in the Bank's September 2025 works document. That document tests turnover, financial resources and current commitments. Your tender's own qualification section decides.
- Can joint venture members add their capacity?
- Some tenders add each member's bid capacity together. Others set a share for each member. Read the joint venture rule in your tender.
- What if my turnover is in another currency?
- The tender normally states how to convert it. Follow that rule, and show the rate and date you used.
Sources
Rules and portals change. Check the tender’s own documents and the official source before you rely on any of this.