In today’s competitive tendering environment, simply quoting the lower price is not enough; it requires a proper strategy when preparing the financial bid and technical bid. Many bidders get rejected not due to the higher price but because their technical and financial bids were not prepared or presented correctly.
Authorities first check who is capable, who meets the eligibility criteria, and who follows the tender format, before even looking at the financial bid. That is why preparing technical bids and financial bids correctly is one of the critical aspects of winning the tender contract.
In this easy guide, we have explained the simplest way to prepare a technical bid and financial bid, examples, format, opening process, and best practices. So, if you are a bidder and want to win the government tender contract, then read the guide completely.
What Is a Technical Bid and Financial Bid in Tendering?
Most of the tenders follow the two bid or two cover system:
>> Technical Bid: Evaluated first to check eligibility, experience, and technical capability.
>> Financial Bid: Opened only for the bidders who qualify technically and contain the price quote.
Important: This system ensures that contracts are awarded not just to the lowest bidder, but to the most capable and compliant bidder.
What is Technical Bid mean in a Tender?
Technical bids in the tender process explain how and whether a bidder is capable of executing the tender work. It focuses on the quality, experience, resources, and compliance – not pricing.
What Technical Bid Includes:
>> Company profile and registration details.
>> Relevant work experience.
>> Technical approach or methodology.
>> Manpower and equipment details.
>> Compliance documents.
>> Certification and licenses.
Important: The technical bid must NOT contain any pricing information. Including price details can result in an instant rejection.
What is the Format of Technical Bid?
The technical bid format varies depending on the departments, still the standard technical bid format for tender includes:
| No. | Format | Includes |
| Covering Letter | >> Tender reference number. >> Acceptance of the tender terms. >> Authorized signatory details | |
| Company Profile | >> Legal status (Proprietorship / LLP / Pvt Ltd) >> Years of operation >> Core business activities. | |
| Eligibility and Compliance Documents | >> PAN, GST, MSME (if applicable) >> Turnover certificates >> Solvency or financial capability (if required) | |
| Technical capability and methodology | >> Approach to executing the work >> Project timelines and workflow >> Quality assurance measures. | |
| Experience and Past Projects | >> Similar work completed >> Work orders or completion certificates. | |
| Manpower and Equipment details | >> Technical staff qualifications. >> Machinery or tools used. |
Quick Recap – Technical Bid
Make a proper technical bid that shows:
- Clear alignment with tender requirements.
- Proper document indexing
- Clearly formatted sections.
- NO financial data.
Quick TIP: Use tables, bullet points, and headings to make the evaluation easier for the tender committee.
What is the Technical Bid Opening Process?
The technical bid opening process usually follows these steps:
- Technical bids are opened on the scheduled date.
- On that bidder names and basic details are recorded.
- Evaluation committee checks:
>> Eligibility.
>> Document completeness.
>> Technical compliance.
- Then, they shortlist the qualified bidders.
- The financial bid opening date is announced.
Note: Only bidders who pass the technical evaluation move to the next stage.
What Is a Financial Bid in Tender?
Financial bid is the next step that contains the price quotation for executing the tender work. It shows the cost competitiveness of the bidder.
In simple terms, a financial bid represents the total amount the bidder is willing to charge, as per tender conditions.
What is the Format of Financial Bid in tenders?
Here is the basic format of financial bid that usually includes:
| No. | Financial Bid Format | Includes |
| Quoted price | >> Item wise or lump sum price >> As per BOQ (bill of quantities) | |
| Tax Details | >> GST or applicable taxes. >> Inclusive or exclusive pricing. | |
| Price Validity | Validity period of the quoted price. | |
| Total Tender Value | Final amount in figures and words. |
Financial Bid Sample (Structure)
Here is how the financial bid sample usually looks:
| Description | Quantity | Rate | Amount |
| As per BOQ | — | —- | Rs. XXXXX |
Note: The bidder must strictly follow the BOQ (Bill of Quantity) format provided in the tender document.
Steps to Prepare Technical and Financial Bids
Steps to follow to prepare the winning technical and financial bids:
Step 1: Read Tender Documents Carefully
Read and understand the eligibility criteria, formats, and submission rules to prepare the winning bids.
Step 2: Prepare the Technical Bid First
>> Focus on compliance
>> Attach all required documents
>> Follow the exact format
Step 3: Prepare the Financial Bid Separately
>> Use BOQ only
>> Avoid assumptions
>> Double-check calculations
Step 4: Review Before Submission
>> No pricing in technical bid
>> Proper signatures and stamps
>> Correct file naming (for e-tenders)
Frequently Asked Questions (FAQs)
Q. What is the difference between technical bid and financial bid?
Ans. The simple difference, technical bid evaluates capability and compliance, while the financial bid evaluates price.
Q. Can a financial bid be opened without technical qualification?
Ans. No, the financial bid is opened only after clearing the technical bid stage.
Q. Is there a standard technical bid format for tender?
Ans. NO! Most tenders follow a structured technical bid format mentioned in the tender documents that vary based on the departments.
Final Words
Preparing the technical bid and financial bid are the crucial and critical steps that need to be completed correctly. To win the tender contract, bidders must follow the structured format of bidding and make it strategically. A strong technical bid increases your chances of qualification, while a well calculated financial bid enhances competitiveness. Bid confidently and stay connected with TenderShark for more such information and to find the latest active tenders.