Summer 2008

Prequalification – What You Don’t Know May Hurt Your Business

Prequalified contractors receive a Certificate of Eligibility from the Division of Contract Procurement which is a separate division of the KYTC, unrelated to the DBE certification process.

This certificate assures KYTC and other contractors that your business is capable of performing the required work. Prequalification is necessary for all contractors for all road construction and maintenance work to be performed. For a list of work classifications that require a Certificate of Eligibility from the Division of Contract Procurement, please refer to the instructions on the front page of this eNewsletter.

To prepare for the prequalification process you should understand what is required and plan ahead:

• Carefully choose the type of work for which you seek eligibility. You can only receive eligibility if your firm has the organization, experience and equipment to do the job.
• Know that experience is a major factor for eligibility. If your firm has limited experience doing the work for which you are applying, bid on smaller related jobs to gain that experience prior to applying.
• Seek work that will add to your accomplishments and prepare a "resume" of your company's experience and references.  
• Understand that 50 percent of the eligibility criteria is based on performance (30 percent on plant and equipment and 20 percent on the organization and its experience).
• Understand your contracting capacity. Will you seek eligibility for contracts exceeding $250,000 or $1,000,000?
• Bonding capacity is also a very important issue for all DBEs seeking work on the Project. Can you obtain bonding for the size of job on which you are seeking to bid?
• You must be able to document positive working capital. It is a key requirement for prequalification. Current Assets - Current Liabilities = Working Capital.
• Promote your business by making sure you are in contact with as many prime contractors as possible - ask to be added to their Contractors List.

DBEs PLEASE NOTE: Your prequalification status and/or lack thereof is listed on the Ohio River Bridges Project’s DBE Directory. Please check your prequalification status there and notify the Project Manager with any changes or additions.

For more information about KYTC prequalification and the Certificate of Eligibility, visit the Division of Construction Procurement or contact Brent Kropf at brent.kropf@ky.gov or Steve Waddle at steve.waddle@ky.gov or call 502-564-3500.