Standard Statutory CPWD / NHAI / PWD Formula

Bid Capacity Calculator (2AN − B)

Calculate your official available bidding capacity for civil engineering and government works contracts. Accurately verify qualification thresholds before tender submission.

Input Parameters

Currency:

1. Max Annual Turnover / Civil Works Executed (A) in ₹ Crores

Maximum turnover achieved in any single financial year over the last 5 years, updated to current price level.

₹

Apply standard 8% compounding annual price escalation (indexed to current year)

Escalation multiplier: 1.08x (1 Year indexed)

2. Proposed Completion Duration (N) 1.50 Years (18 Months)

Time prescribed for completion of the proposed works in years (fractions permitted, e.g. 0.5 = 6 months).

Yrs

3. Existing Commitments & Ongoing Works (B) in ₹ Crores

Total residual value of all ongoing contracts and committed works to be completed during the above period N.

₹

4. Proposed Tender Estimated Value (Optional) For qualification verdict

Enter the estimated cost of the tender you intend to bid for to test whether you qualify.

₹

How the 2AN − B Formula Operates

Under the CPWD Works Manual and NHAI EPC Bidding Guidelines:

Available Bid Capacity = (2 × A × N) − B

2 represents the statutory multiplier factor permitted by CPWD (some agencies use 1.5 or 2.5 depending on work type).
A reflects past operational capacity updated for inflation.
N captures the execution time horizon.
B deducts currently committed liabilities so the contractor is not overleveraged.

Live Calculation Verdict Eligible to Bid

Net Available Bid Capacity

₹ 66.00 Cr

(Calculated with 8% escalation factor)

Gross Capacity (2×A×N) ₹ 81.00 Cr

Commitments (B) - ₹ 15.00 Cr

Tender Eligibility Status Capacity Exceeds by 165%

Find Live Tenders in Your Capacity

Instant direct match with active tenders on TenderZenith.

Calculation Step:

(2 × 27.00 × 1.50) − 15.00 = 66.00 Cr

Frequently Asked Questions

Guidance on calculating and maximizing your statutory bid capacity.

What is the 2AN-B Bid Capacity formula?

The 2AN-B formula is the standard statutory qualification criterion used by CPWD, NHAI, Railways, and state PWDs in India. Here, A represents the maximum annual turnover / civil work executed in any one year over the past 5 years (updated to current price level using an 8% compounding escalation factor), N is the completion duration of the proposed work in years, and B is the value of existing commitments and ongoing contracts to be completed during period N.

What happens if my Bid Capacity is less than the Tender Value?

If your calculated Net Available Bid Capacity is strictly less than the estimated tender value (or technical qualification threshold), your bid will be technically disqualified during the technical bid evaluation stage, regardless of whether your financial quote is lowest (L1).

How does price escalation work in turnover calculation (A)?

Government departments allow multiplying previous financial years’ turnover by an annual escalation factor (typically 8% to 10% compounding per annum) to account for inflation, bringing past years’ execution value to the current financial year level.

How can I increase my Bid Capacity for a large tender?

If your single-entity capacity falls short, standard procurement guidelines allow forming a Joint Venture (JV) or Consortium. In a JV, the capacities of the lead partner and consortium members are combined according to their equity participation percentage (e.g. 51% Lead + 49% Partner).