Owners are concerned about contractors being qualified to do the work on their project.
There are several levels of qualifications.
- Performance Bonds
- If you are going to have a bond provided, this could well be all the prequalification you need.
- If you are not going to have a performance bond, make sure the size of the project is in line with the size of the firm’s capabilities. You may not want a contractor to work on a one year $20 million project if their annual volume is only $10 million. Conversely an ENR Top 400 Contractor is not necessarily suited for a $100,000 building addition.
- Specialty
- A firm that specializes in mechanical process work may or may not be capable of doing plumbing work. This is due to using pipefitters versus plumbers.
- An electrical contractor that specializes in pole line and substation work may not be able to handle data and control systems.
- Reputation
- Are they a firm that bid shops?
- Unethical or potentially illegal subcontracting practices may not be right for any size of project you may contemplate.
- A company that pursues changes orders at the drop of the hat is another one to avoid.
How should you pre-qualify contractors?
First, let the market pre-qualify them for the size of contractor based on the project size and type of work. Second, let the bonding company do your work for you in this matter. Third, let the company do their homework as to the type of work. And, of course, use good old fashioned foot work; talk with the firm, others that have used the firm and subcontractors in the case of qualifying prime contractors.
