Solvency is your company’s ability to take on a public contract and perform it correctly. It’s not just about money; it’s about proving that you have the resources, experience, and organization to deliver what you promise.
It is usually divided into three types:
- Financial solvency: proving that your company is financially stable and able to cover the payments and expenses of the project. This is typically demonstrated through balance sheets, annual accounts, or income statements.
- Technical solvency: proving that you have the necessary means, equipment, technology, or methodology to carry out the contract to the required quality standards.
- Professional solvency: demonstrating that you or your team have experience and previous references in similar projects. This may include certificates of past work, successfully completed contracts, or client reports.
Even if your company is small, solvency can be demonstrated by combining your own resources with reliable subcontractors, partners’ experience, or management tools that ensure deadlines and requirements will be met.
