When owners decide to utilize pre-qualified prime bidders on a project, there are several important recommendations they should follow.
- First, keep the number of bidders between 4 and 6 contractors. This ensures competitive prices for the owner and contractors will bid the project since the odds are still favorable at this size.
- The contracting community should know who the Prime Bidders will be on the project prior to issuing bid documents.
- The bid opening should be public and the low bid should receive the award for the project since every contractor is already qualified. This shows the owner is completely aboveboard in the award process.
- And lastly, the Owner should require the Prime Contractor to bond the project. If they are unable to bond it, this should be a “red flag” to the Owner.
