a

Guide to Determine
and Verify the Bidder’s Residual
Capacity in the Public Works’
Contracting Processes

G-VCRP-02
 Guide to Determine and Verify the Bidder’s
Residual Capacity in the Public Works’
Contracting Processes

Introduction .................................................................................................................... 3
Definitions ...................................................................................................................... 3

1. What is the Residual contracting Capacity? ................................................................. 4

2. How to establish the Contracting Process’ Residual Capacity? ................................... 4

3. How to know if the bidder meets the Contracting Process’ Residual Capacity?. ........ 5

4. How to calculate the Residual Capacity del bidder? .................................................... 5

A. How to calculate the Organization Capacity (Co)? .............................................................................. 6

B. How to calculate the Experience (E)? ................................................................................................. 7

C. How to calculate the Financial capacity (CF)? .................................................................................... 8

D. How to calculate the Technical capacity (CT)? ................................................................................... 8

E. How to present the list of the Contracts being Performed? ................................................................. 9

5. Foreign bidders with no branch office in Colombia ............................................................. 10

6. How to calculate the Contracting Experience of a plural bidder? ................................. 11

7. Example ....................................................................................................................... 11

8. How to utilize the “Residual Capacity” application to figure out the Bidder’s
Residual Experience Bidder? ........................................................................................... 13

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Introduction

Article 72 of law 1682 of 2013 whereby measures and dispositions for the transport infrastructure projects
are adopted and extraordinary powers are granted, established:

“Article 72. Residual contracting Capacity for public works’ contracts. The Residual contracting Capacity
for the execution of public works’ contracts will be obtained by subtracting from the Contracting Experience,
the balance of the amount of the Contracts being Performed.

The Contracting Experience must be calculated through the evaluation of the following factors: Experience
(E), Financial capacity (CF), Technical capacity (CT), and Organization Capacity (CO).

For the purposes of the evaluation of the factors mentioned in the preceding paragraph, under any
circumstance or for any reason will it be possible to take into account the returns and the profits.

The National Government will regulate the matter within sixty (60) days after the enactment of this law,
relying on the technical opinion of the Colombian Engineers’ Society by virtue of Law 49 of 1904, to see to
an equitable regulation of the implementation of minimums and maximums that ensure the rights of the
small contractors.”

Colombia Compra Eficiente must define a methodology to figure out the bidder’s Residual Capacity taking into
account the factors set forth in law 1682 of 2013, and the same will not be considered equal or similar to the
enabling requirements established in article 10 of Decree 1510 of 2013.

In consequence, Colombia Compra Eficiente makes this guide available to the participants of the public
purchasing and procurement system.

Definitions

The capitalized expressions utilized in this document must be construed with the meaning set forth in Decree
1510 of 2013. The terms defined are utilized in singular and in plural as required by the context in which they
are utilized. The terms that have not been defined below must be construed according to their natural and
obvious meaning.

The dates for the calculations the subject matter of this guide must be expressed in months and years.

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 Definitions

Are the contracts that on the date of presentation of the offer bound the bidder
with State Entities and with private entities to execute civil works, including the
execution of civil works in the concession contracts of and the work contracts
Contracts being Performed
entered into with concessionaries, including the suspended contracts
and those that do not have start minutes. The contracts being wound up will
not be construed as Contracts being Performed.
It is the extension of time of 12 months or less of the term of execution of a
Period
contract.
BALANCES of the Contracts Is the addition of the amounts to be executed of the Contracts being
Performed during the Execution or SCE 12 following months.

1 What is the Residual contracting Capacity?

The Residual Capacity is the ability of a contractor to comply, in a full and timely manner, with the purpose of
a work contract, without having his other contractual commitments affecting its capacity to fulfill the contract
the subject of the Contracting Process. In the Process’ Documents of a public works’ contract, the State Entity
must establish a requirement additional to the enabling requirements namely the Residual Capacity or
Contracting K, which must be complied with by those interested in taking part in a Contracting Process for the
execution of a public work.

How to establish the Contracting Process’ Residual Capacity?

The calculation of the Contracting Process’ Residual Capacity is equivalent to the estimated official budget of
the Contracting Process less the prepayment or down payment as the case may be, if the estimated term of
the contract is of less than (12) months.

Residual Capacity of Estimated Offic. Down payment

Contracting Process budget or prepayment

If the estimated term of the contract is higher than twelve (12) months, the Contracting Process’ Residual
Capacity is equivalent to the linear proportion of 12 months of the estimated official budget less the down
payment or prepayment as the case may be.

Residual Capacity of the Estimated Official budget Prepmy,or down pmt 12

Contracting Process month
Estim. contract term (months)

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Colombia Compra Eficiente makes available to the participants of the procurement system an Excel application
called “Residual Capacity” which allows the State Entity to calculate the Residual Capacity and to validate that
the offerors comply with the Contracting Process’ Residual Capacity. The application can be downloaded in
the website of Colombia Compra Eficiente, www.colombiacompra.gov.co.

How to know if the bidder meets the

3 Residual Capacity of the Contracting Process?

The bidder must accredit a Residual Capacity equal to or higher than the Residual Capacity established in the
Process’ Documents for the Contracting Process. Therefore, the bidder’s Residual Capacity is enough if:

Bidder’s Residual Capacity > Contracting process’ Residual Capacity

4 How to calculate the Residual Capacity del bidder?

The bidder must prove that its operation or commercial activity allows him to assume new obligations derived
from the contract the subject of the Contracting Process. Therefore, the bidder in a public works’ Contracting
Process must present the following information to accredit its Residual Capacity:

The list of the Contracts being Performed, as well as the amount and term of such contracts.

The list of the Contracts being Performed, signed by companies, consortia or joint ventures, in which the
bidder has a share, as well as the value and term of such contracts.

The audited statement of results that contains the best operational revenues of the last five (5) years and
the audited balance sheet of the last year, signed by the interested party or its legal representative and the
statutory auditor if it has the obligation to have one, or the auditor or accountant if it does not have the
obligation to have a statutory auditor. In the case of bidders obligated to have RUP, the State Entities must
request as additional document the statement of results that contains the best operational revenues of the
last five (5) years, as the liquidity information can be found in the RUP.

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The calculation of the Contracting Process’ Residual Capacity must include the factors of Experience (E),
Financial capacity (CF), Technical capacity (CT), Organization Capacity (CO) and the Balances of the
Contracts being Performed, as per the following formula:

A maximum score is allocated to each one of the factors:

Factor Maximum score

Experience (E) 120

Financial capacity (CF) 40
Technical capacity (CT) 40
Total 200

The Organization Capacity does not have allocation of score in the formula because its measurement unit is
in Colombian pesos and constitutes a multiplying factor of the other factors, as stated in the following
section.

A. How to calculate the Organization Capacity (CO)?

The Organization Capacity (CO) corresponds to the operational revenues, taking the foregoing into account:

Years of financial information Organization Capacity (CO)

Five (5) years or more Higher operational revenues of the last five years
Between one (1) and five (5) Mayor operational revenues of the bidder’s life years
Less than (1) year USD 125.0001

If the bidder’s operational revenues with one (1) or more years of financial information is lower than USD
125.000, the Organization Capacity (CO) del bidder is equal to USD 125.000. To verify the Organization
Capacity of the bidder the State Entity must request the statement of results that contains the best operational
revenues of the last five (5) years duly audited and approved by the public accountant or statutory auditor as
corresponds and entered into by the legal representative.

1. Calculated using the exchange rate determined by the Ministry of Trade, Industry and Tourism every 2 years for the purposes of the Mipyme (SME)
benefit threshold.

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In the Contracting Processes in which the offer must be filed before the 5th business day of the month of April,
the financial data must be the data audited and approved by the highest corporate body that the bidder intends
to accredit.

B. How to calculate the Experience (E)?

The bidder’s experience (E) for the purposes of the Residual Capacity is accredited through the ratio between:
(i) the total amount in pesos of the contracts related to the construction activity registered by the bidder in the
RUP in segment 72 “Building, Construction of Facilities and Maintenance Services” of the Classification of
goods and services; and (ii) the official budget of Contracting Process.

The ratio indicates the number of times that the bidder has carried out contracts equivalent to the amount of
the Contracting Process the subject of the accreditation of the Residual Capacity. The foregoing is described
in the formula below.
Total Value of the RUP Contracts (COP)
Experience: ------------------------------------------------------------------------------
(Estimated Official Budget x Share %)

The calculation of the experience (E) factor for the purposes of the Residual Capacity of a member of a plural
bidder must consider its participation in the Contracting Process the subject of calculation of the Residual
Capacity. If the bidder is not plural, no percentage applies2.

To accredit the experience (E) factor, the bidder must fill the form that corresponds to Annex 1, which contains
the contracts registered in segment 72 and their total value in Colombian pesos liquidated using the minimum
legal monthly wages in force (SMMLV).

The legal entities with existence of less than three (3) years, can accredit the experience of their shareholders,
members or founders.

The score allotted to the experience (E) factor must be assigned based on the following table:

Higher Lower than or Score

than equal to

0 3 60
3 6 80
6 10 100
10 Higher 120

2. The plural bidder’s residual capacity is the addition of Residual capacity of each one of the members.

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C. How to calculate the Financial capacity (CF)?
The financial capacity (CF) is obtained taking into account the bidder’s liquidity ratio based on the following
formula:

Current assets
Current liabilities
The liquidity score must be assigned based on the following table:

Higher than or Lower Score

equal to than
0 0,5 20
0,5 0,75 25
0,75 1,00 30
1,00 1,5 35
1,5 Higher 40

The bidder’s liquidity ratio is verified with the RUP. If the bidder does not have enough age to have audited
financial statements as of the 31st of December of the preceding year, the quarterly or initial financial
statements must be taken into account, duly signed by the legal representative and the auditor that were
registered with the RUP3.

D. How to calculate the Technical capacity (CT)?

The technical capacity (CT) is assigned taking into account the number of members and of architecture,
engineering and geology professionals hired under an employment or services agreement according to which
they carry out activities directly related to the construction.

To accredit the technical capacity (CT) the bidder must fill the relevant Form in Annex 2. The score of the
technical capacity (CT) is assigned based on the following table:

From To Score

1 5 20
6 10 30
11 Higher 40

3. Article 9 of Decree 1510 of 2013.

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E. How to present the list of the Contracts being Performed?

The bidder must submit a certificate signed by its legal representative and its statutory auditor, if the bidder
has the obligation to have one, or otherwise by the accountant or independent auditor, that must contain the
list of the Contracts being Performed, both at a national and an international level, stating: (i) the amount of
the contract; (ii) the term of the contract in months; (iii) the start date of the works the subject of the contract,
day, month, year; (iv) if the work is done by a consortium, joint venture or special purpose vehicle, together
with the share percentage of the bidder submitting the certificate; (v) if the contract is suspended and, if such
is the case, the date of suspension. If the bidder does not have Contracts being Performed, the certificate must
expressly state such circumstance.

Contract 1 Data

Term 16 months
Value $ 1.000.000.000
Start Date 12 December 2013
Share percentage 80% the bidder
Date of presentation of the offer the subject of the Procurement 1 February 2014
Process
Days performed 51 days
Days to be performed as of 1 February 2014 429 days
Is it suspended? No

The calculation of the Balance of the Contracts being Performed must be made in a linear manner when a
daily execution equivalent to the amount of the contract divided by the term thereof, expressed in days. This
result is multiplied by the number of days pending to comply with the term of the contract and if the contract is
performed by a plural structure by the participation of the bidder in the respective contractor. If the number of
days to be executed in a contract is higher than 12 months, namely 360 days, the Balance of the Contract
being Performed will only consider the linear proportion of 12 months.

In the case of the example the calculation is as follows:

Daily Balance of the $ 1.000.000.000

Contract being Performed $2.083.333
16 months 30 days

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If a contract is suspended, the calculation of the Balance of the Contract being Performed of said contract must
be figured out assuming that the part yet to be executed shall start to be performed on the date of the
presentation of the offer of the Contracting Process.

Decree 791 of 2014 refers to the contracts to execute civil works, entered into with either State Entities, private
entities, including the contracts to execute civil works pursuant concession contracts. The foregoing because
the contractor’s experience to carry out new works is affected by both the public and private contracts.
Likewise, it refers to the contracts entered into by the bidder such as those entered into by consortia, joint
ventures or special purpose vehicles in which the bidder takes part.

5 Foreign bidders with no branch office in Colombia

The foreign bidders with no branch office in Colombia must accredit the weighing factors for the calculation of
the Residual Capacity as follows:

(a) Organization and Financial Capacity: they must submit their financial statement in the currency of the
country in which the same were issued and also in Colombian pesos. The bidder and the State Entity, for
the purposes of accrediting and verifying the requirements will take into account the representative
market rate in force on the date in which the financial statements were issued. For such purpose, the
bidder and the State Entity shall take into account the exchange rates certified by the Financial
Superintendence.

(b) Experience: they must submit the form that is part of this Guide as annex, duly signed by the bidder’s
legal representative and statutory auditor or accountant of the bidder. The bidder must submit a copy of
the contracts signed or certifications of third parties that received the services for the construction of civil
works with third parties, either public or private.

The foreign bidders that according to the applicable provisions approve their audited financial statements with
cutoff date on the 31st of December on a date that is after the fifth business day of the month of April, can
submit their financial statements as of the 31st of December, signed by the legal representative together with
an audit pre-report in which the auditor or the statutory auditor certify that: (a) the financial information filed
with the State Entity is the one submitted to the auditor or statutory auditor to comply with their audit duties;
and (b) the bidder, in a regular manner and for prior fiscal periods, has adopted generally accepted accounting
standards and principles to prepare his data and financial statements. This provision is also applicable to the
information that the bidder has to submit, in these conditions, to register with the RUP according to article 9 of
Decree 1510 of 2013.

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 6 How to calculate the Contracting Experience of a plural bidder?

The Residual Capacity of a plural bidder must be the addition of the Residual Capacity of each one of its
members.

7 Example

Consortium AB takes part in a Contracting Process the estimated budget of which is of $ 2.300.000.000, 10%
down payment, date for the submission of the offer is the 5th of February of 2014 and the term of the contract
is of 9 months. Below the information of Company A and of Company B.

Company A Data

Information Figures
Consortium Share 80%
Best operational revenues of the last 5 years $ 11.000.000.000
Liquidity 1,5
Experience recorded in RUP $ 70.000.000.000
Professional Personal enrolled 18 persons

70.000.000.000
Experience Calculation 38,04 times

Company A Score

Factors Score
Organization Capacity (CO) $ 11.000.000.000
Financial capacity (CF) 40
Experience (E) 120
Technical capacity (CT) 40

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 Contracts being performed Company A

Term 12 months, 360 days

Valor $ 2.300.000.000
Start Date 10 November 2013
Executor 70% the bidder
Days executed 87
Days to be executed as of the 5th of February 2014 273

120 40
Residual Capacity A 11.000.000.000
100

Daily Balance of the $ 2.300.000.000

Contract being Performed $ 6.388.888
30 12

Saldo del Contract being Performed $ 6.388.888 273 days 70% $

1.220.916.666

Company B Data

Information Figures
Consortium Share 20%
Best operational revenues of the last 5 years $ 1.100.000.000
Liquidity 3,5
Experience recorded in RUP $ 9.000.000.000
Professional Personal enrolled 6 personas

9.000.000.000
Experience Calculation 19,56 times

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c
Company B Score

Factors Score
Organization Capacity (CO) $ 1.100.000.000
Financial capacity (CF) 40
Experience (E) 120
Technical capacity (CT) 30

120 40 30
Residual Capacity B 1.100.000.000 SCE
100

SCE 0
Residual Experience B $ 2.090.000.000

The Residual Capacity of the AB Consortium is as follows:

Residual Capacity AB $ 20.779.083.333 $ 2.090.000.000 $22.869.083.333

Lastly, the result must be higher to and equal to $2.300.000.000 less $230.000.000 for the bidder to comply
with the Contracting Process’ Residual Capacity.

How to utilize the “Residual Capacity” application to figure

8 out the Bidder’s Residual Capacity?

Colombia Compra Eficiente makes available to the participants of the public procurement system the Excel
application called “Residual Capacity” to: (a) help the State Entities to establish the Residual Capacity in the
Contracting Processes of public works; (b) to offer the bidders a tool to verify whether or not they have the
Residual Capacity demanded in the Contracting Processes in which they have interest and to accredit it in
such processes; and (c) to offer to the State Entities a tool to verify the information submitted by the bidders
to accredit the Residual Capacity.

This application can be unloaded from http://www.colombiacompra.gov.co/manuales-guias-y-pliegos-

tipo/manuales-y-guias
At the “Home” the application has the main menu from which the forms related to the information of the
Contracting Process and of bidder are displayed:

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Contracting Process

General Information: The State Entity must enter the following information of the Contracting Process: (a)
estimated value of the contract, (b) percentage of down payment or prepayment and (c) the date of
presentation of the offer and (d) estimated term of the contract:

The State Entity must hit the “Save Data” button to save the data of the Contracting Process.

Bidder

Bidder’s Information: This button presents a form that specifies: the name of the bidder and indication of
whether or not the bidder is a plural bidder.

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If the bidder is a plural bidder, the State Entity must state the number of members that make up the plural
bidder:

Afterwards, the State Entity must state the name and the participation of each one of the members of the plural
bidder:

The State Entity must select using the character X the type of financial information that the bidder(s) have in
the event that it is a plural bidder. The bidders may have (a) more than one (1) year of financial data or less
than one (1) year of financial data:

If the bidder has one (1) or more years of financial information, the bidder must enter the best operational
revenues of the last five (5) years. If the bidder has less than (1) year of financial data, the application will
automatically assign to it operational revenues of USD 125.000. In case that the bidder has financial
information of year (1) or more years and has operational revenues of less than a USD 125.000, the application
will also assign to the bidder this same amount in operational revenues:

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In addition, the State Entity must input the (a) liquidity; (b) number of professionals; (c) the total contracted
amount of the bidder; and (d) the equity.

Information of Contracts being Performed: This button displays a form in which they must enter the number of
Contracts being Performed that the bidder has as of the date of presentation of the offer. If the bidder is plural
it must indicate the number of Contracts being Performed of each one of the members of the plural bidder. If
the bidder does not have Contracts being Performed they must write zero (0):

Afterwards, the State Entity must record the information of each one of the contracts recorded in the preceding
form:

This information comprises:

Value: Value of the contract in Colombian pesos. If there are decimals, divide with comma (,).

Start Date: day, month and year of the start of the contract (dd-mm-yyyy).

Term: Term of the contract in months.

Plural bidder: If the contract in force is performed by a consortium, joint venture or special purpose vehicle, it must mark
“Yes”. If the contract is performed by the bidder only it must mark “No”.

Participation: Percentage of participation in each one of the Contracts being Performed. If the bidder is not plural, the
participation will be of 100%.

Is it suspended?: If the contract is suspended, the user must write “yes”. Otherwise, it must write the word “No”.

Suspension Date: If the contract is suspended, the user must enter the suspension date (dd-mm-yyyy). Otherwise, the box
must be left blank.

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Once these form have been filled, the home menu shall look like this:

The button of “Calculate” will make all the calculations established in the methodology described in this manual
and it will create a report in which it will define whether the bidder meets the Residual Capacity Required for
this Contracting Process:

In addition, the button of “Create PDF” creates the report and exports it to a PDF file:

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Annex 1 - Certification of contratos for accreditation of experience

Bidder

Contracts related to the activity of Total value of the contracts performed (amount
Participation bidder en the contractor
construction – segment 72 Classifier del weighed contract times the participation
plural
UNSPSC in Colombian pesos)

Total

In witness whereof I sign this document on the day [day] of the month of [month] of [year].

Signature of the legal representative of the Bidder

Name:
Position:
ID Card:
The representatives of the members of the Plural bidder must each one sign this document.

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Annex 2 - Certification of the Technical Capac.

Bidder

Name of the member Number and year of the

and/or professional of the Employment or Professional
Profession N° of professional ID Term of the Contract
architecture, engineering or services contract
geology

In witness whereof I sign this document on the day [day] of the month of [month] of [year].

Signature of the legal representative of the Bidder Signature of the representative of the auditor or
statutory auditor

Name:
Name:
Position:
Position:
I. D. Card:
I. D. Card:

The representatives of the members of the Plural bidder must each one sign this document.

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