6 Keys To Contractor Prequalification Success

It is not easy to narrow down a subcontractor without proper enquiry. If you are a contractor skilled workforce, strong management, financial stability and ability to perform quality work to your company’s standards are the things you need to consider while approaching a subcontractor. A qualified subcontractor will have the mentioned qualities and will be the one who can help you complete your construction contract. Never settle for anything less because it might put the construction work on risk. Let us look into a factor that helps a contractor to prequalify the best subcontractors.

  1. Collect the General Information

Start with collecting the basic information. Company ownership, current management, number of employees and the states in which they have contractor licenses are the kind of general information you should be looking for. Also find their scale of project size they have done before.

  1. Find our their Safety Records

Safety comes first so you need to check their safety records quite deeply as well. Start from enquiring about their OSHA 300 information and if they have had any citations issued and their Experience Modification Rate for the past three years. You must also find out about their training program and also if they conduct regular safety meetings.

  1. Enquire of their Surety and Bonding Capacity

Collect information about who their current surety provider is, the name of the agent and their contact information. Do not forget to ask about their bond rates for particular volumes beside their single project bonding capacity and their aggregate bonding capacity.

  1. Learn well about their financial standing

Find out if the subcontractor you are planning to work with has ever filed for bankruptcy and ask for their Dun & Bradstreet number if they have any. Also ask them to present other financial information such as current year revenues, total and current assets, net equity, current liabilities and average monthly billings.

  1. Litigation History

Ask them if they have any active litigation. Inquire if the firm has had any labour law violations, had their license suspended or cancelled and if they’ve had any judgments filed against the organisation. Also, ask about any contract defaults and whether they’ve ever been terminated from a contract.

  1. Reference contacts

Ask your subcontractors to present some reference contacts to inquire about their previous partnerships. Find out if the contacts can give word on the company’s credibility and quality. An online prequalification form can help to collect the above-mentioned details and will help you come to a precise decision easily. And if you are a subcontractor, make sure all the details submitted are valid enough to get you through prequalifying.

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