Prequalification of Contractor

Published on November 23, 2017

In the current system Prequalification of Contractor is important tool for managing Contractor
Safety. It is a process to identify contractors who are compatible with client’s safety management
system. The process includes evaluation of performance of contractor, worker’s compensation
and to know recordable injury rates, safety programs and competency level of contractors.

Prequalification of Contractors examines contractor ability to work safely, how effective the
contractor’s safety program is being implemented and how safety competency /assessment is
being carried out. Prequalification of Contractors calls for thorough and effective review of
contract safety specifications at bid meeting & pre-award meetings. To prove their competence,
contractors must undertake multiple prequalification processes depending on client preference,
wasting resource on reams of questionnaires.

To get certified, qualified and competent personnel from contractor, process of Prequalification
of contractor is a best practice.

Prequalification of Contractor helps to create a pool of contractors that have the quality, capacity
and ability to perform work on projects of a particular size and complexity, It weeds out
contractors with a history of litigation, claims, and performance failures.For any project work a
contractor is required to bid informal contracts for which safety prequalification is required.

Contractor performance history will be measured according to two separate components, Field and
Compliance.

 General Company Information

 Form of Company
 Key Personnel
 Contact Info
 Firm Experience & Key Personnel by Category
 Describe Experience & Approach
 Key Personnel & Resumes

Technical Criteria for prequalifying on the basis of Competency.

 Contractor should have experience in providing services for a minimum of 3 years in respective field.
 Detail Company Information with Organization structure, List of manpower with CVs of key personnel,
Plant and Machinery list mentioning year of manufacturing, Support agencies and other facilities &
resources.
 Details of completion of similar type of projects in the last three years indicating brief scope of work, value
of work, contractual Duration, actual completion of Project, clients name, contact details of the client,
safety certification / inspection of plant and machineries, HSE statistics, LTI graph etc.
 Typical Project planning and Execution methodology
 Past Track record of similar works executed list with Work order, P.O Copies or LOI copies and Client
completion certificates.
 Details of current commitments - List of all jobs under execution with the value of the Job and percentage
completion (with particular emphasis on project of similar magnitude carried out)
  Experience of working in similar kind of project.
 HSE policy and implementation procedures in line with internationally accepted practices with statistics for
last four years,
 Quality assurance & quality control practices currently in place for the execution of similar work.
 Contractor is requested to submit his financial performance documents (Audited balance sheets and Profit
& Loss statements) and Audit Reports for last 2 preceding years.
 Company registration details, Pan card, Service tax / GST details.
 Documents in support of Health, Safety, Environment & Quality [HSEQ] performance
 Contractor to provide insurance of employee policy, medical evaluation including drug testing policy.
 Contractor to provide details for managing and monitoring subcontractor performance
 Contractor to provide safety and security evaluation policy
 Copies of ISO 9001, 14001, OHSAS 18001 or any other certification as applicable.

Financial Criteria for prequalification of contractor

 Turnover in each of the financial

 Positive net worth of financial year.
 Liquidity ratio in each of financial year.

Pre-qualification is an essential aspect of tendering for a contract to provide services required. To

be eligible for pre-qualification, contractors need to demonstrate that they possess, or have
access to, what’s required to undertake work and deliver services for potential buyers.

Personal meeting between client and contractor for Prequalification of a contractor

 Contractor representative to understand the financial implication to meet expectations of client.

 Contractor representative to understand technical impact while execution of contract including managing
safety.
 Client and Contractor representatives to have clear understanding on safety competency and effectiveness
of implementation of safety program during execution of work.
 Monitoring Performance of contractors
 To assist in meeting value for money and quality assurance objectives, agencies are to submit a
Performance Report.
 Contract Information
 PQQ Process

Expressions of interest in the Form of this Pre Qualification Questionnaire will be used to form a
shortlist of suppliers who will be invited to tender.

Effectiveness of Process of prequalification and selection of contractor can be key to achieve contractor safety
management.

 It reduces variability during contract execution

 I improves project completion target effectiveness in terms of cost ,quality and
schedule                                                                                
 It is possible to achieve alignment with contractor before execution work starts.
 Contractor provide knowledgeable, skilled and experienced with sufficient resources to safety management.
 Contractor review statutory / regulatory requirement in advance
 Contractor discuss job-specific safety plants.
 Contractor evaluate effectiveness of orientation/trade specific training periodically.
 Contractor review plans and Job safety Analysis before start of work.
  Contractor conduct field audits, He documents the audits finding and demands corrective action from
concern executive personnel.
 Contractor always communicate safety improvement progress.
 Contractor does monitoring, does the changes required, changes metrics as per requirement.
 Contractor investigates safety incidents, injuries and near misses for improving safety management.

Source : https://www.linkedin.com/pulse/prequalification-contractor-natverlal-t-jadav