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Contractor Prequalification

Last updated: May 31, 2019

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.

Safeopedia Explains Contractor Prequalification

Prequalification laws are set at the state level and, therefore, very between the states. In North Carolina, prequalification is prohibited when selecting architects, engineers, surveyors, construction managers, design builders, preliminary designers for design-build bridging projects, and private developers for private-public partnership contracts. There is no set minimum contract cost for prequalification. Local government is legally obligated to being uniform, consistent and transparent in the application of contractor pre-qualification to all bidders.


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