3 Factors to Consider When Starting the Prequalification Process

Hiring clients look at multiple factors before choosing a contractor: are they safe, reliable, and compliant — just to name a few. Roughly 738,281 contractor companies in the U.S. supplied various services in 2020, and the numbers continue to grow every year, making it more challenging for hiring clients to choose the right contractors for their business. 

In this case, becoming  prequalified can help your organization stand out. Let’s examine why the contractor prequalification process is important, what services are available, and what factors you should consider before starting the process. 

What is the Contractor Prequalification Process? 

Hiring clients need assurance about contractors’ certification, practices, and qualifications. The contractor prequalification process gathers information and conducts audits to ensure a contractor is reliable and capable. This process analyzes their performance, management process, resources, and capacity. It also minimizes risks to hiring clients by looking at the following:

• The risks or hazards a contractor brings with their work
• How clients and contractors control and minimize these risks

Prequalification helps you stand out to hiring clients as it signifies you are skilled and capable of meeting project requirements and delivering high-quality, compliant work. It ensures you meet health and safety standards that safeguard workers, protect the business’s reputation, are environmentally conscious, and minimize accidents. Working with contractor management services can streamline the process, help you set up your accounts, and free up your time so you can focus on what you do best. 

Factors to Consider When Starting the Prequalification Process

Here are a few things you should consider before setting up your accounts and starting the prequalification process. 

1. Your Preferred Industry and Business Strategy 

Your hiring client will dictate which platform is required and may choose a particular one based on the industry you are in. For example, the platform Avetta® shows you are meeting health and safety standards that are essential for Oil and Gas companies, while Veriforce® contains more features dedicated towards supply chain management. 

2. The Prequalification Platform’s Network

Hiring clients prefer to use prequalification platforms instead to determine their compatibility with contractors. Based on the hiring client you are working with, you may be able to consider the size or scale of the network before choosing which platform to engage with. 

You should consider the network’s history, client relationship, reputation, and other contractor’s experience as well.

3. Documentation and Records Required

Each prequalification service has different requirements. These can relate to your insurance, financial stability, safety records, etc. The following are a few requirements that may be requested by a hiring client:

• HSE (Health, Safety, and Environmental) programs
• EMR (Experience Modification Rate) letters that show the cost of past injuries acquired
• Insurance certificate to confirm sufficient insurance coverage
• OSHA forms from the last 3 years

Although you must be ready to provide a comprehensive list of up-to-date documents and records in all prequalifications, some may require items you have already worked on, expediting the process. 

How We Can Help With This Process

For hiring clients, the prequalification process is a crucial part of contractor hiring, so you must be prepared to navigate them at length. However, we understand that they can be intricate and time-consuming, especially when you have work waiting in the field. 

Let our contractor management services help you navigate and streamline the process so you can focus on what you do best! Contact us, and we’ll take care of your prequalification needs.