One of the documents you’ll almost certainly need for government bidding is a Statement of Net Worth. This form proves to the procuring entity that your business has the financial capacity to take on the project. For small and medium contractors, this can be make-or-break in the eligibility screening, so getting the numbers right matters a lot.
The Statement of Net Worth is a snapshot of what your business owns versus what it owes. Under RA 9184 and its IRR, bidders must meet a minimum net worth requirement — typically the larger of PHP 1 million or 50% of the Approved Budget for the Contract. Here’s what goes into the statement and how to prepare it correctly.
- The basic formula: Assets minus Liabilities equals Net Worth — list all business assets (cash, receivables, inventory, equipment, property) and subtract all liabilities (loans, payables, accrued expenses)
- For sole proprietors, use your business financial statements prepared in accordance with Philippine Financial Reporting Standards (PFRS) and signed by a CPA
- For corporations and partnerships, use audited financial statements stamped and signed by an independent CPA, covering the most recent fiscal year
- The statement must be notarized — bring a printed copy with your CPA’s signature and audited financial statements attached as supporting documents
- Include a detailed breakdown: current assets, non-current assets, current liabilities, and long-term liabilities, with subtotals for each section
- The net worth shown must be within the last 6 months before bid submission — older financial statements may be rejected by the Bids and Awards Committee
- Keep copies of all supporting bank statements, property titles, and receivable schedules — the BAC may request these during post-qualification
The GPPB website has a sample format you can follow. For more context on the other eligibility documents you need, check our guide on the Omnibus Sworn Statement, which is another standard requirement that goes alongside financial documents. You’ll also want to review the PhilGEPS registration process if you haven’t registered yet. For the notarization part, see our notarization requirements guide since your net worth statement will need to be notarized.
Before submitting, double-check that the numbers match your audited financial statements exactly. Discrepancies between your Statement of Net Worth and your audited financials are one of the most common reasons for post-qualification failure. The BIR website has guidance on the required format for financial statements for tax purposes.
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