Prequalification is a system that ensures only appropriately skilled and experienced businesses are permitted to submit tenders in certain categories of contract works.
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.
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.
Prequalification assessments review quantitative and qualitative information in relation to a business' operations, performance and position.
- Working capital
- Assets as a % of liabilities
- Profitability as a % of turnover
- Paid up share capital
- Business structure (usually company structure required)
- Company management experience
- Technical capacity and resources
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.
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The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.