(h) prequalification reduces significantly, if not eliminates, problems of rejection associated with low-priced bids submitted by bidders of doubtful capability; and. (i) prequalification gives the Bank some indication of an Employer’s ability to manage an important, early procurement function. Disadvantages of Prequalification 11. Prequalification may have some potential disadvantages: (a) prequalification may increase procurement lead time. This can be minimized by good procurement planning, e.g., undertaking the prequalification process while Bidding Documents are being prepared; (b) the Borrower is required to review all prequalification applications, whereas postqualification requires the review of the qualifications of, usually only the lowest evaluated bidder; (c) collusion (and the possibility of price-rigging) is easier among a limited number of identified bidders, particularly if they are of the same nationality; (d) the element of subjective judgment required by evaluators when applying the prequalification criteria to a number of Applicants, and the discretionary rights reserved to the Employer, provide opportunities for externally influenced deviations from the expected high standards of ethics and impartiality in prequalifying Applicants. 12. Procurement plans should identify the contracts that will be subject to prequalification. In order to avoid delays in implementation, advance actions for prequalification should be agreed with the Bank at an early stage of the project cycle.
(h) prequalification reduces significantly, if not eliminates, problems of rejection associated with low-priced bids submitted by bidders of doubtful capability; and. (i) prequalification gives the Bank some indication of an Employer’s ability to manage an important, early procurement function. Disadvantages of Prequalification 11. Prequalification may have some potential disadvantages: (a) prequalification may increase procurement lead time. This can be minimized by good procurement planning, e.g., undertaking the prequalification process while Bidding Documents are being prepared; (b) the Borrower is required to review all prequalification applications, whereas postqualification requires the review of the qualifications of, usually only the lowest evaluated bidder; (c) collusion (and the possibility of price-rigging) is easier among a limited number of identified bidders, particularly if they are of the same nationality; (d) the element of subjective judgment required by evaluators when applying the prequalification criteria to a number of Applicants, and the discretionary rights reserved to the Employer, provide opportunities for externally influenced deviations from the expected high standards of ethics and impartiality in prequalifying Applicants. 12. Procurement plans should identify the contracts that will be subject to prequalification. In order to avoid delays in implementation, advance actions for prequalification should be agreed with the Bank at an early stage of the project cycle.