What Does Contractor Prequalification Mean?
Contractor prequalification is an information gathering and assessment process that determines a contractor’s capability, capacity, resources, management processes, and performance.
Typical subject matter areas include financial capacity and surety, work history, licensing and qualifications, management standards and, regulatory, quality, safety, and environmental performance data.
When used by local government, the potential bidders on projects are audited to assess their prequalification standing before bids are accepted. Only those bidders that are prequalified will be invited to submit a bid.