Prequalification

A head contractor asks each subcontractor to complete a prequalification form and upload supporting documents. The contractor's procurement, HSEQ and commercial teams review it and approve the business for certain trades and contract values.

Approved subcontractors go on a preferred or approved list, which is what estimators and project teams use when sending out EOIs, RFTs and RFQs. Prequalification usually expires after a set period, and insurances, licences and certificates must be kept current in between. Performance on past jobs is often reviewed at renewal.

For the subcontractor, prequalification is the price of entry. Many head contractors will not send a tender to a business that is not on the approved list, however good its price. Keeping a ready pack of current certificates, policies and project references makes it quick to prequalify with each new builder.

For a deeper look, read Subcontractor Onboarding Checklist. Try the free Subcontractor Prequalification tool.

• Business details. ABN, company structure, directors and trading history.

• Licences. Contractor or trade licences required in each state where the work is done.

• Insurances. Public liability, workers compensation and, where relevant, professional indemnity, with current certificates of currency.

• Financial capacity. Turnover, accounts or a credit check, matched to the contract values the business will be offered.

• Work health and safety. Safety management system, incident history, SWMS examples and training records.

• Quality and environment. Quality and environmental management systems, sometimes third-party certified.

• Experience and capacity. Relevant projects, references, key people and current workload.

Most governments require contractors to be prequalified before tendering for public construction work, with separate schemes for builders, trade contractors and consultants, banded by contract value.

• New South Wales runs several whole-of-government construction prequalification schemes through buy.nsw, including schemes for general construction works by value range, and Transport for NSW prequalifies road and bridge contractors separately.

• Victoria uses the Construction Supplier Register, administered by the Department of Treasury and Finance, for construction works and construction services suppliers.

• The National Prequalification System for Non-Residential Building applies to large government building contracts, generally those valued at 50 million dollars or more, and is recognised across participating jurisdictions.

Other states and territories run their own schemes. Check the relevant agency's requirements well before the tender you want to bid on, as assessment can take weeks.

• Letting documents lapse. An expired insurance certificate can remove a subcontractor from the approved list mid-tender.

• One-off checks only. Prequalification is not a set-and-forget step. Monitor expiry dates and job performance.

• Prequalifying everyone. A list too long to manage loses its value. Match categories and value limits to real capability.

• Ignoring capacity. A well qualified subcontractor that is already fully booked is still a delivery risk.

Duplicating effort. Asking subcontractors to resubmit the same documents for every tender wastes time on both sides. Collect them once and keep them current.