---
title: "Short note: Benefits of prequalification"
subject: "Engineering Professional Practice"
chapter: 4
key: "semester_8/engineering_professional_practice:short-note-prequalification"
source: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/short-note-prequalification
site: BCT Engineering
---

# Short note: Benefits of prequalification

Engineering Professional Practice · Chapter 4: Contract Management

- Asked in: 2069 Bhadra, 2.5 marks
- Video: [Pre Qualification of Contractors - Tenders and Contracts - Quantity Survey Estimation and Valuation](https://www.youtube.com/watch?v=19dzHX9oV2c) — Ekeeda
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/engineering_professional_practice/short-note-prequalification
- Whole chapter: https://www.bctengineer.com/md/semester_8/engineering_professional_practice/chapter-4

## Question

Write a short note on Benefits of prequalification.

## Short answer

Prequalification screens contractors on experience, finance, equipment and personnel before bidding. Benefits include fewer unqualified bidders, saving employer and bidder time and cost, good competition among capable firms, transparency and knowledge of market capacity. It is used for large, complex or specialised works.

## Answer

**Prequalification** is the screening of interested contractors or consultants on their experience, finance, equipment and personnel before they are invited to bid. It is used for large, complex or specialised works under the Public Procurement Act 2063.

#### Benefits
- **Only capable bidders** are allowed to bid, which reduces the risk of failure, delay and poor quality.
- **Saves time and cost** of the employer in evaluating many bids from unqualified bidders.
- **Saves bidders' cost**, since unqualified firms do not waste money on preparing detailed bids.
- Encourages **good competition** among capable firms and attracts reputed contractors.
- Fair, transparent and based on declared criteria, so bidders trust the process.
- Gives the employer an idea of the market and the capacity available before issuing the final bid documents.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Prequalification is the screening of contractors or consultants
   A. after the contract is awarded
   B. before they are invited to bid, on experience, finance, equipment and personnel
   C. only on their quoted price
   D. only on their registration fee
   Answer: B. Firms are screened on capability before being invited to bid. (Key point: Meaning of prequalification)

2. How does prequalification save the employer's time and cost?
   A. It removes the need for any evaluation
   B. Fewer bids from unqualified bidders have to be evaluated
   C. It fixes the price in advance
   D. It avoids public notice
   Answer: B. Only capable firms bid, so the employer evaluates fewer bids and wastes less effort. (Key point: Benefit to employer)

3. Why is prequalification useful for bidders?
   A. Unqualified firms avoid spending money on detailed bids
   B. It guarantees the contract to all
   C. It gives free bid documents
   D. It removes competition
   Answer: A. Unqualified firms are screened out early, so they do not waste money preparing detailed bids. (Key point: Benefit to bidders)