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  • 1/3/06

    CITY OF CHICAGODEPARTMENT OF PROCUREMENT SERVICES

    CONTRACTORSSTATEMENT OF EXPERIENCE

    ANDFINANCIAL CONDITION

    STATEMENT DATED , 20 .

    SUBMITTED BY:

    CONTRACTOR:

    MAIN OFFICE ADDRESS:

    CITY / STATE:

    TELEPHONE NO.: ( ) ZIP CODE:

    FAX NO.: ( ) FEIN NO:

    E-MAIL ADDRESS.:

  • i

    FINANCIAL RATING OF CONTRACTORS

    PURPOSE

    The purpose of the financial rating and experience evaluation procedure is to provide this Department withadequate information regarding a contractors capabilities to undertake and satisfactorily complete anycontract awarded by the City of Chicago.

    GENERAL - METHOD OF DETERMINING FINANCIAL RATING

    In order to provide a fair and equitable basis for the financial rating of a contractor, the Department considersthe following major factors:

    1. Financial Resources

    2. Organization and Experience

    3. Plants and Equipment

    4. Past Performance

    In the evaluation of a contractor, considerable weight is given to such factors as the amount of work acontractor does with his own organization, the facilities he owns or has under his control, the experience anddepth of his organization, and the performance ratings of his past work. The financial rating limits the totalamount of uncompleted work that the contractor may have under contract at any one time.

    If new items of equipment are acquired after the financial statement is prepared, evidence of purchase mustbe submitted by the accountant. This may be in letter form giving a description of each item with make,model number, serial number, the purchase price, down payment and method of payment of balance (ifany).

    The accountant must also state his method of verification (receipted invoice, canceled check, etc.) and thatequipment is in the contractors possession. The financial rating will be adjusted to reflect the money usedto purchase other equipment.

    A contractor who expands or reduces his/her staff and/or equipment must notify the Chief ProcurementOfficer immediately in writing in order to make any necessary adjustment to the financial rating. The ChiefProcurement Officer shall be notified immediately in writing of any withdrawal of securities or other assetsduring the current year subsequent to the filing of a financial statement so that the financial rating may beadjusted accordingly. Failure to comply with these requirements shall be considered grounds for denyingor reducing a contractors financial rating with the Department.

    FORMS REQUIRED TO ESTABLISH FINANCIAL RATING

    A contractor wishing to receive financial rating for the first time is furnished the following necessary papersupon request:

    Contractors Statement of Experience and Financial Condition.

    Any contractor who desires to be financially rated for the first time or to renew an expired rating shall furnishone copy of the above mentioned Form to the Department at least thirty (30) calendar days prior to thescheduled opening of bids in which the contractor is interested.

  • ii

    Mail or deliver to: Chief Procurement OfficerDepartment of Procurement ServicesCity Hall, Room 403121 N. LaSalle StreetChicago, Illinois 60602

    A Contractor who is requesting a financial rating for the first time must submit his/her nine-digit FederalEmployers Identification Number. If the Contractor does not have a Federal Employers ID Number, hisSocial Security number must be submitted. State law requires that all out-of-State contractors secure acertificate from the Secretary of State of the State of Illinois authorizing them to do business in this State.Such certificates must be obtained prior to the awarding of a contract.

    The Department will, to the extent permitted by law, maintain and treat all of the contractors financialinformation as confidential and for use only by the Department or another governmental agency entitled bylaw or by agreement to use such information.

    PREPARATION OF CONTRACTORS STATEMENT OF EXPERIENCE AND FINANCIALCONDITION

    1. ACCOUNTANTS

    A. A contractors audited financial statement shall be prepared from data secured from theactual audit of a contractors records.

    1) A certified public accountant, who has been registered by the Department ofRegistration and Education of the State of Illinois and who holds a valid andunrevoked registration card from the Department, or

    2) An out-of-state certified public accountant who has been issued a certificate andholds a valid and unrevoked registration card where reciprocity is recognized bythat State and the State of Illinois.

    No certified financial statement shall be accepted which has been prepared by anaccountant who has directly or indirectly a financial interest in or is connected with thebusiness of the contractor submitting the statement.

    B. If a financial rating of $ 500,000 is desired by a contractor, provided that he/she has met allother requirements and that calculation using the financial rating formula produce a figurethat equals or exceeds these limits, either of the following procedures may be utilized.

    1) The unaudited financial statement shall be prepared, signed, and sworn to in thesame manner as audited statements, except that in these cases, it will not benecessary for the statement to be prepared and certified by a registeredaccountant. However, these statements also must be prepared from data securedfrom the contractors records, must be complete and in balance, properly signedby the contractor, and notarized.

    Note: Since adequate working capital is necessary as start-up money on contract work,insufficient working capital may limit these statements to a financial rating of evenless than $ 500,000.

  • iii

    OWNER EXCAVATING

    AGGREGATEBASES &

    SURFACESBITUMINOUSSURFACING P.C.C.

    MISC.CONCRETE DRAINAGE

    Forest Preserve District $8,336 $6,700 $14,781 $14,395

    City of Chicago-OHare Field $233,156

    DuPage County-Sec. 111 $26,671 $5,000 $114,701 $4,000 $17,664 $19,715

    Village of Hinsdale SA 222 $23,000 $20,000 $224,980 $30,820 $30,705

    Cook County District No. 3 $45,920

    Village of Mt. Prospect-Maint. $2,372 $28,611 $4,005 $6,000

    Miscellaneous $26,000

    TOTAL $58,007 $313,148 $409,073 $38,825 $38,059 $50,420

    2) A signed certification by a surety stating the maximum amount of performancebond which the surety will provide on behalf of the contractor will be accepted inlieu of a financial statement as a basis for the financial rating of $ 500,000, or less.The certification by the surety must specify the effective time limits or letting datesand dollar value that such performance bond will be provided on behalf of thecontractor. The Certificate of Financial Rating issued to a contractor as a result ofsuch certification will reflect the time limits or letting dates and dollar value, up to$ 500,000, of such certification by the surety. A completed Form, except for thefinancial portions, must also be submitted.

    2. RECORD OF PAST EXPERIENCE

    Information as to construction experience should cover fully the nature and dollar volume of thework completed and for whom performed. Contracts must be listed separately and the type of workperformed and dollar value clearly defined, for example:

    RECORD OF PAST EXPERIENCE 19 OR 20

    A complete list of all technical, supervisory and key construction personnel with their years ofconstruction experience is required. A contractor being financially rated for the first time should listhis construction experience for the period of several years in order that his capabilities may bebetter evaluated.

    3. SCHEDULE OF CONTRACTORS EQUIPMENT

    The list of equipment shall include the make, model, serial number, and size of capacity of majorequipment items be properly identified. In addition, equipment that is owned and equipment thatis leased must be clearly defined. The accountant shall satisfy himself as to the correctness ofadditions and deductions in the equipment schedule and shall see that proper provision has beenmade for depreciation. All equipment which is still serviceable, even though fully depreciated,should be included and listed by classification such as graders, scrapers, end loaders, bulldozers,cranes, etc. The list of leased equipment must indicate whether or not the equipment is in thephysical possession of the contractor.

    4. CONTRACTORS FINANCIAL STATEMENT

    Auditing methods shall be thorough and shall follow established and accepted auditing practices.

  • iv

    5. ACCOUNTS RECEIVABLE AND PAYABLE

    In preparing Schedule D, Accounts Receivable - Contracts in Progress, and Schedule O,Accounts Payable - Subcontractors, the data required shall be taken from the last pay estimate justprior to the date of the financial statement and the estimate number from which the data was takenshall be shown opposite each item in the schedule. If the contractor has completed work notcovered by current estimates and an item for such work is shown in these schedules, the accountantshall

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