Decision Criteria in Contractor Prequalification

Abstract

Contractor prequalification involves the screening of contractors by a project owner, according to a given set of criteria, in order to determine their competence to perform the work if awarded the construction contract. This paper presents the results of numerous interviews with construction professionals who have extensive experience with contractor prequalification. A generic logic has been identified in the prequalification decision‐making process. Three distinctive parts of this process are: the characteristics of the decision maker; the characteristics of the contractor; and the resulting decision. Pertinent parameters relevant to the decision maker are outlined. Data sources for determining the characteristics of a contractor are also described. Current decision‐making strategies are presented along with example applications of each. Biases from the construction owner's perspective that impact the contractor prequalification decision have been identified.