Prequalification

What is prequalification?

Prequalification is a system that ensures only appropriately skilled and experienced businesses are permitted to submit tenders in certain categories of contract works.

Who requires prequalification?

Several organisations that provide work to the construction industry, including the Department of Planning, Transport and Infrastructure, require construction businesses to meet prequalification requirements. Once a business has successfully met prequalification assessments it can then tender for contract works and be considered for selection.

How long does prequalification apply for?

Prequalification is normally not for an indefinite period of time. Usually businesses are required to undertake the prequalification assessment in periodic intervals, i.e. 3 years.

What metrics or information are assessed in prequalification?

Prequalification assessments review quantitative and qualitative information in relation to a business' operations, performance and position.

Financial

• Turnover
• Working capital
• Assets as a % of liabilities
• Profitability as a % of turnover
• Paid up share capital

Non-Financial

• Business structure (usually company structure required)
• Company management experience
• Technical capacity and resources

How can Brentnalls Construction help?

Our construction team assists clients in understanding prequalification requirements and implementing strategies to ensure ongoing compliance. As construction business advisors, we are acutely aware of the importance of maintaining prequalification to ensure business sustainability and maintaining a healthy pipeline of work. Contact us for more information or to arrange an appointment.