The assessment of a tenderer's financial and economic standing is a key part of any procurement process. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract.
In this regard, tenderers must declare that they have the necessary capacity to carry out a contract and must be in a position to produce the necessary documentation when requested. That documentary evidence (e.g. bank statements, audited accounts, proof of professional indemnity, etc.) need only be produced when a tenderer has been short-listed or is coming under consideration for the award of a contract. Contracting authorities are advised to check these issues throughout a procurement process up to the point of awarding a contract to ensure that such circumstances have not changed. If the financial situation of the tenderer has changed they can be excluded from any further participation in the competition.
Any tenders received from companies in receivership are considered on their own merits, taking account of the circumstances of the case and the provisions of the relevant tender competition.
