The process of prequalification of tender involves evaluating the capabilities of contractors or suppliers before they are allowed to bid for a project. This process ensures that only those firms with the necessary experience, resources, and financial stability can participate, leading to more competitive and realistic bids. Prequalification typically starts with a request for information (RFI) or a prequalification questionnaire (PQQ), where potential bidders are asked to provide details about their company, past projects, financial standing, and technical capabilities. Based on the submitted information, the tendering authority evaluates the contractors to determine their suitability for the specific project. The key steps in the prequalification process include the following: First, the client defines the criteria for selection, which may involve technical expertise, financial strength, safety records, and past performance on similar projects. Second, contractors submit the necessary documentation, which is reviewed by the client or a third-party evaluator. Third, the shortlisted bidders are invited to submit their tenders, with the understanding that they have already passed the prequalification stage. The main advantage of prequalification is that it helps ensure that only qualified contractors are invited to tender, reducing the risk of selecting an underqualified or financially unstable company for a project. It also saves time and resources for both the client and the bidders by narrowing