PQQ Question

Financial Experience and Economic Standing

Score

Weight

Weighted Score

Minimum threshold requirement (if applicable)

Local Authority Comments

B2 and B31

Using the audited accounts, Companies House search information, Dun and Bradsheet reports, text-line information, and other appropriate information, assess the solvency and financial strength of the Bidder (including Relevant Organisations) to provide the works and services. This evaluation should take into account areas including the following:

•   key financial ratios;

•  credit rating;

•  liquidity, turnover and profitability.

B4

Has the Bidder (including any Relevant Organisations) disclosed any contingent liabilities or loss (where otherwise not reported) that would require disclosure in accordance with International Accounting Standard 10? If so, to what extent do the contingent liabilities or loss impact on the solvency and financial strength of the Bidder to provide the works and services?

B5

Has the Bidder (including any Relevant Organisations) disclosed any changes in accounting policy or any planned changes in accounting policy since the last published accounts for example acquisitions, mergers, share issues, major investments/major loans? If so, to what extent does this disclosure impact on the solvency and financial strength of the Bidder to provide the works and services?

B6

Has the Bidder (including any Relevant Organisations) disclosed any events which would have required an adjustment to be made in accordance with International Accounting Standard 10? If so, to what extent does the disclosure impact on the solvency and financial strength of the Bidder to provide the works and services?

B7

Has the Bidder (including any Relevant Organisations) made any stock exchange announcement since the last published accounts? If so, to what extent does the announcement impact on the solvency and financial strength of the Bidder to provide the works and services?

B8.1 - B8.3

If holding/ parent company group accounts or a third party is providing a guarantee which is being relied on in the assessment of solvency and financial strength, then using the audited accounts, Companies House search information, Dun and Bradstreet reports, text-line information, and other appropriate Information assess the solvency and financial strength of the holding/parent company or third party. This evaluation should take into account areas including the following:

• Key financial ratios;

• liquidity, turnover and profitability;

• credit rating.

B8.1 - B8.3

In the event that the Local Authority applies a turnover test threshold for any of the key first tier contractors , then the Local Authority must apply the same turnover test threshold for any holding/parent company or third party organisation proposing to act as a guarantor for the relevant first tier contractor.

B8.4

Has the holding/parent company or third party organisation disclosed any contingent liabilities or loss (where otherwise not reported) that would require disclosure in accordance with International Accounting Standard 10? If so, to what extent does the disclosure impact on the solvency and financial strength of the holding/parent company or other guarantor?

B8.5

Has the holding/parent company or third party organisation disclosed any changes in accounting policy or any planned changes in accounting policy since the last published accounts, for example, acquisitions, mergers, share issues, major investments, major loans? If so, to what extent does the disclosure impact on the solvency and financial strength of the holding/parent company or other guarantor?

B8.6

Has the holding/parent company or third party organisation disclosed any events which would have required an adjustment to be made in accordance with International Accounting Standard 10? If so, to what extent does the disclosure impact on the solvency and financial strength of the holding /parent company or other guarantor?

B8.7

Has the holding/parent company or third party organisation made any stock exchange announcement (or equivalent) since the publication of the latest set of accounts? If so, to what extent does the announcement impact on the solvency and financial strength of the holding/parent company or other guarantor?

B9

Has the Bidder (including Relevant Organisations) and/ or any holding/parent company and/or third party organisation who proposes to act as a guarantor disclosed any claims, litigation or judgements made against them? If so, do the claims, litigation or judgements have an adverse impact on the solvency and financial strength of the Bidder (including any Relevant Organisations), holding/parent company or other guarantor?

B10 and B11

Assess the Bidders' (including any Relevant Organisations') approach on insurance matters.

ABILITY TO RAISE PROJECT AND/OR CORPORATE FINANCE

B12

Assess the Bidder's (including any Relevant Organisation's) experience of raising finance:

•  in schemes involving housing accommodation and/or similar facilities; and/or

•  projects involving the public sector.

This assessment will have regard to the extent of the proven expertise in raising finance and of ensuring continuing value for money. In the first instance, this assessment will be made in the context of experience in these areas in the public sector. Where such experience is not identified, then the assessment should be made in the context of experience in these areas in the private sector.

B13

Assess the Bidder's approach to securing finance for the project and the structure that the financing will take. This assessment should take into account the process that the Bidder intends to take to secure the finance required, the proportion of equity to be provided and the likely sources of external funding and its form.

B14

Assess the Bidder's experience of retaining investments in PFI/PPP Projects.