In 1999, the California Legislature enacted a law that allows many public agencies to require licensed contractors – that intend to bid on a public works job – to “pre-qualify” for the right to bid on a specific public works project (or on public works project undertaken by a public agency) during a specified period of time.
The law does not require any public agency to adopt a pre-qualification system. Instead, it authorizes every public agency that so chooses to adopt a pre-qualification system to specify certain requirements that must be met by each interested contractor as described below.
Public Contract Code Section 20101 outlines the procedure:
- Use a “standardized questionnaire and financial statement in a form specified by the public entity”
- Adopt and apply a uniform system of rating bidders on objective criteria, on the basis of the completed questionnaires and financial statements
- Create an appeal procedure, by which a contractor that is denied pre-qualification may seek a reversal of that determination.
Noted below are some of the benefits of using a “pre-qualified” system – for a public works project – when engaging with interested contractors:
- Encourages “serious” bidders to pre-qualify prior to bidding.
- Allows a thorough review of a bidder (prior to bidding) of their:
- past performance
- financial stability
Murow Development Consultants has successfully administrated a Pre-Qualification process for individual projects for our Developer clients. Murow DC will make sure the process meets the requirements of Public Contracting Codes, as well as obtain desired Contractors to bid on your project. Please contact us for your Pre-Qualification Service needs.
Blog Written By: Erica Langham, Director of Bid Administration
Comments or questions? Please feel free to contact Erica at email@example.com.