Eligibility for participation in the large tenders:
Most of the public sector and private sector tenders have stringent eligibility norms to put a price bid. Many small and medium enterprises do not grow because they cannot participate in the tenders. A small company cannot meet eligibility criteria in terms of the number of projects, size of projects, value of projects, the complexity of the project, etc and cannot participate in the tender. The authorities generally require that the bidder has at least one experience in the specific niche activity expected in the project. The companies cannot meet all these conditions nor they can bargain for lowering these criteria in the pre-bid meetings. However, when the companies get combined, their operational credentials and financial net worth increases and they can participate in the large tenders which they individually could not.