Why Should An Agency Consider Contractor Prequalification?

The Proper Prequalification Process Benefits of Construction Management Questions

Benefits

Improves Bidder Pool/Requires Experienced Contractors

More Sophisticated Bidders =• Better Questions During Bidding Phase• Reduce Bid Protests• Less Frivolous Change Orders During Construction Phase

The Process Saves Money

Benefits

Avoids Post-Bid Disputes Regarding Responsibility of Low Bidder

More Sophisticated Bidders =• Fewer Unnecessary Pre-Bid Questions• Better Scheduling & Project Management During Construction

Phase• Reduces Risk of Bid Protests

The Process Saves Time

Burdens

Requires Staff/Consultant/Attorney Efforts Up Front Learn Proper Process Improper Process Can Create Challenges Spending Time/Money On Designers/Consultants To

Tailor For Each Process

The Process Costs Money

Burdens

Advanced Planning is Critical Code Allows Parallel Process With Bidding Best Practices Suggests Process Complete

Before Bidding Starts Governing Board Action Recommended

Practice Tip: Process Can Commence Before Design Is Complete

The Process Takes Time

Annual Prequalification By Project Size

Questions1. Does The Agency Do Multiple Projects Within A Certain Bid

Amount?2. Does The Bidding Pool Vary From Project To Project?

No Obligation That All Projects Done Within Time Period Use Prequalified Bidders

Annual Prequalification By Project Type

Questions1. Does The Agency Do Numerous Projects Of Similar Nature?2. Typically, Does Size Of Project Matter?3. What Are The Risk Factors With Specific Project Types?

Typically Used By Large Agencies That Complete Numerous Projects

The CRITICAL Timeline

Analyze Prequalification Packages Perform Independent Due Diligence Check References Evaluate/Score Packages Send Letters To Those Seeking

Prequalification Conduct Administrative Appeals

Hearings Gain Approval Of Final Documents Issue Bid Documents

The CRITICAL Timeline

ReceivePrequalification Package

AdvertisePrequalification Evaluate Packages

Appeals Due

Conduct Appeals Hearing

Advertise Bidding Documents

Allow For Any Further Protest

(Suggested Timeframe *)

(4 Weeks)

(2 Weeks)

(1 Week) (1 Week)

(2 Weeks)

(1 Week)

Drafting Prequalification Package

Three Types Of Questions• “Light-Switch”• Scored• Informational

Drafting Prequalification Package

Establish List Of Project Features What’s Most Important For Project Success?

• Drop Dead Time Limitations?• Community Impact?• Specific Experience Of Prime – Can They Do The Job?

Drafting Prequalification Package –Sample Language

Similar Construction Projects CompletedPrime Contractors Number Of Public Works Projects With An Engineer’s Estimate Of

$10M Or Greater Number Of Public Works Projects Completed Using State Standards Number Of Projects Completed In Which Company Was Responsible

for Excavating And/Or Placing Fill Material In Excess Of 200,00CY Number Of Cast-In-Place Bridges Completed Per State Standards Number Of Projects In Which Company Was Responsible For

Underground Utility Construction (Water, Sanitary Sewer And Storm Drain Construction) In Excess Of $2M

Analyze Prequalification Packages

Independent Due Diligence Reference Checks Evaluation And Scoring Be Thorough Keep It Objective And Fair

This Is The MOST Important Step/Most Errors By Owners

Dealing With The Unqualified Contractor

Code Requires That Unqualified Contractors Receive Written Notification From Agency Including The Basis For Non-Qualification And Any Supporting Documents

Important To Track Scoring Of Each Contractor To Substantiate Decision

The Administrative Appeals Process

The Best Process (Do It Early!):(Not All Required By Code) Establish Appeals Panel And Gain Governing Board

Approval Establish Appeals Process

• Standard Questions• Standard Scoring

Set Amount Of Time For Hearing Panel Should Promptly Issue Written Ruling

Contractor's Other Remedies

If Contractor Is Deemed Non-Prequalified By The Appeals Panel, It Could:• Appeal To Governing Board• Bring Writ Of Mandate• Potentially Seek Temporary Restraining Order To Stall Bid Process

Arbitration Alternative• New Process/Currently Being Tested• Insures Completion Of Process Before Bidding• Accelerated Process Deters Further Action

Real Life War Story

The Complicated One(Forester Creek Improvements) $19M Estimate $23.5M Actual Bid Amount Project Required Negotiation And

Approval Of Multiple Resource Agencies, Including:• Caltrans• ACOE• SDRWQCB• F&W

Three Distinct Project Components• Bridges• Earth Work• Utilities

Created Experience Requirements For Each Component

Real Life War Story

The Complicated One(Forester Creek Improvements) The Forester Creek Improvement

Project Was A Federally Funded Project Using Caltrans Metric Standards. Specifically, Projects Listed Must Demonstrate Your Firm's Experience With:• Large Excavation And Fill Operations• Bridge And Retaining Wall Construction• Water, Sanitary Sewer And Storm Drain

Construction And Relocation• Landscaping And Irrigation Construction• Demolition Of Structures

Real Life War Story

The Complicated One(Forester Creek Improvements)Sample Questions Provide Only Five Projects That Meet

The Requested Requirements Projects Submitted For Review Must

Have A Contract Amount Of No Less Than 60% Of The Engineer's Estimate $17.8M ($19M)

Projects Listed Must Demonstrate That Your Firm's Experience Matches The Work Required To Be Performed In Connection With This Project

Real Life War Story

Real Life War Story

Known Bidder’s Pool

Bidders Will Be Able To Do Project• Residential And Commercial Contractors Bidding Public Work

All "Dirty Laundry" Out In Prequalification Phase Bidders Are Willing To Spend Time/Money To Participate In

Prequalification = Really Want Project And Make Commitment

Optimum Use Of Available Funds Control Of The Scope Of The Work Project Scheduling Optimum Use Of Design And Construction Firms' Skills And Talents Avoidance Of Delays, Changes And Disputes Enhancing Project Design And Construction Quality Optimum Flexibility In Contracting And Procurement

We serve our clients with honesty, integrity, candor, and objectivity. We assign staff to projects in accordance with their qualifications and commensurate

with the services to be provided. We furnish services consistent with the established and accepted standards of the

profession and with the laws and regulations which govern its practice. We endeavor to avoid conflicts of interest. We will negotiate fairly and openly with our clients in establishing a basis for

compensation. We only make statements that are truthful, and will keep information and records

confidential when appropriate and protect the proprietary interests of our clients and professional colleagues.

We will not discriminate in the performance of our services on the basis of race, religion, national origin, age, disability, or sexual orientation.

We continue to develop professional knowledge and competency, and contribute to the advancement of the construction and program management.

We avoid actions which promote self-interest at the expense of the profession, and will uphold the standards of the construction management profession with honor and dignity.