What is the function of a pre-qualification questionnaire (PQQ)?

The function of a pre-qualification questionnaire (PQQ) is primarily to assess potential suppliers for qualification. This tool is used in the procurement process to gather essential information about a supplier's capabilities, experience, financial stability, and other relevant criteria before considering them for a contract or bidding process.

By utilizing a PQQ, organizations can efficiently screen suppliers to determine if they meet the necessary standards and requirements, thereby ensuring that only qualified suppliers are invited to participate in the subsequent stages of the procurement process. This proactive approach helps minimize risks associated with supplier performance and ultimately contributes to smoother project execution.

The other options, while relevant to procurement activities, do not accurately reflect the specific purpose of a PQQ. Finalizing a contract typically occurs after thorough evaluation and negotiation, not through a PQQ. Negotiating prices and requesting delivery schedules are specific actions that fall within the contract management phase, which happens after suppliers have been qualified. Thus, the PQQ serves as a vital preliminary step in establishing a vendor relationship by ensuring that the right suppliers are being considered from the outset.