6 Keys To Subcontractor Prequalification Success

As a basic contractor, it’s important to be selective in relation to the subcontractors you’re employed with. You wish to select firms which have a reliable expert workforce, robust administration, monetary stability, and might carry out high quality work to your organization’s requirements. To do that, it’s worthwhile to have a longtime subcontractor prequalification course of in place.

As with every enterprise resolution, choosing subcontractors to work with requires you to do your due diligence. You need to be prequalifying each subcontractor you’re contemplating working with to cut back dangers that might impression your small business, resembling subcontractor default or substandard work.

Possibly you might have a steady of subcontractors you routinely do enterprise with, however what occurs if you resolve to tackle a venture in one other state or your whole common subcontractors are unavailable? In some unspecified time in the future, you’ll work with a subcontractor that you’ve got little to no expertise working with. Prequalifying subcontractors earlier than you solicit pricing or subcontractor bids can result in mutually useful partnerships for years to return.

Right here is a number of the key info it’s worthwhile to get hold of in your subcontractor prequalification types:

Common Data

You wish to get some primary info resembling firm possession, present administration, variety of staff, and the states during which they’ve contractor licenses. You additionally wish to discover out in regards to the measurement and scope of the tasks they sometimes work on and whether or not they’re licensed as a Minority Enterprise Enterprise.

Security Information

On the very least, it’s worthwhile to get their OSHA 300 info and whether or not the subcontractor has had any citations issued and their Expertise Modification Charge for the earlier three years. You may as well inquire about their coaching program and whether or not or not they maintain common security conferences.

Surety & Bonding Capability

Discover out the subcontractor’s present surety supplier, agent’s title, and speak to info. You’ll want to ask about their bond charges for particular volumes together with their single venture bonding capability and their mixture bonding capability.

Monetary Standing

Decide if the subcontractor has ever filed for chapter and ask for his or her Dun & Bradstreet quantity if they’ve one. You may as well ask them to offer different monetary info resembling present yr revenues, whole and present property, internet fairness, present liabilities, and common month-to-month billings.

Litigation Historical past

The very first thing to find out is whether or not the subcontractor firm, or any of the house owners, has any lively litigation. Discover out if the subcontractor has had any labor legislation violations, had their license suspended or revoked, and in the event that they’ve had any judgments filed towards the corporate. You must also ask about any contract defaults and whether or not they’ve ever been terminated from a contract.

Ask for References

Ask your potential subcontractors to offer three to 4 reference contacts that may attest to each the standard and dependability of their firm and staff and may confirm the corporate’s creditworthiness.

Last Ideas on Prequalifying Subcontractors

Common contractors ought to make their subcontractor prequalification course of simply accessible. Create a web-based prequalification kind that may be simply discovered in your firm’s web site.  Have a hyperlink to the shape prominently featured on the web page the place you might have your subcontractor alternatives or presently bidding tasks listed.

In case you are a subcontractor searching for extra alternatives, it’s best to contact basic contractors in your space and ask to get prequalified with their firm. You don’t have to attend till they’ve a job that meets your organization’s capabilities. Be proactive and get prequalified first. This fashion, you’ll get contacted by the overall contractor first once they have an upcoming venture requiring companies your organization supplies.

Trying to discover extra subcontractors to your subsequent venture? With ConstructConnect Bid Management, you’ll find the suitable subcontractors to your subsequent venture and guarantee bid protection for a profitable bid day.