Elevate takeoffs for faster bids and increased project success for FREE. See Details Here.

PlanHub’s Q2 Research Reveals Many Opportunities. Register for the Webinar and Learn More

9 Keys to Subcontractor Prequalification Success

Laptop and a qualifications icon.

Subcontractor prequalification helps general contractors (GCs) ensure that they’re hiring qualified subcontractors who have the experience, skills, and financial health to perform the work they will be contracted to do. The process involves collecting information and documentation from each subcontractor about their financial standing, insurance capacity, safety record, and their experience in the trade of their choice. GCs use this information to determine if a sub is a good fit for the type of projects they take on.

Subcontractor prequalification process

The process of subcontractor qualification is completed in four steps:

  1. Establish criteria for subcontractor qualification
  2. Create an application or questionnaire
  3. Review and verify submitted information and documentation
  4. Create a database of qualified subcontractors

Because GCs often don’t perform a lot of the work on their projects, much of their success depends on the abilities of their subcontractors to meet the quality and schedule expectations of each project. Subcontractor prequalification is the best way to assess the ability of a contractor to meet these requirements when you haven’t worked with them before.

With this in mind, there are several advantages to creating and using a construction prequalification process:

  • It can help ensure compliance with local laws and regulations, including licensing, insurance, and certification requirements.
  • Helps ensure quality work by reviewing past projects and gathering information on the quality of the work provided and the subcontractor’s ability to remain on schedule.
  • Prequalified contractors are less likely to have manpower issues, reducing the chance of delays that can impact project success.
  • Reviewing the financial health of each company reduces the probability that a subcontractor will have a potential bankruptcy or other cash flow issue that could cause a delay in their work.
  • Safety standards are maintained by selecting subcontractors with strong safety records. 

9 Things to always have on your subcontractor prequalification forms


1. Company information

Collect general information about the subcontractor’s company, including business name, address, phone number, email address, how long they’ve been in business, what locations/states they work in, who the principals of the company are, their EIN or tax identification number, Dun & Bradstreet number, and whether they’ve been certified as a minority contractor.

2. Licensing

Ask for their trade or contractor license number (if required), the state(s) they are licensed to work in, and expiration date(s). You can also ask about any city business licenses they may have.

3. Insurance

Request a copy of their certificate of insurance, as well as specific policy information (insurance company, policy number, and expiration date), for their general liability, workers’ compensation, automobile, and umbrella insurance policies.

4. Bonding

Ask about their bonding capacity and current bond commitments. You may also request a letter from their surety company detailing this information.

5. Safety

Request a copy of their latest OSHA 300 log (and past logs if so desired), their EMR rating, and a copy of their company safety policy.

6. Finances

Request up to three years of past financial statements and/or tax returns (preferably audited by a third party) and a list of financial references (material suppliers and subcontractors they’ve worked with, if applicable, as well as bank and credit contacts).

7. Experience

Get a list of past projects with similar scope to the type of projects you generally perform. Include project references and, if applicable, sales volume figures from the past 3-5 years.

8. Litigation

Ask if the company has been or is currently involved in any litigation or has claims outstanding as a result of their work. Request detailed information on the nature of these claims or lawsuits.

9. Capacity

Confirm their ability to perform work at the necessary level of production by requesting information about their workforce size, current work in progress, and project backlog or pipeline of future work.

After you’ve collected the information above, review and verify it by looking at the supporting documentation and accessing available public information concerning them and their work history or financial standing. 

If the company meets the requirements you’ve established for subcontractors, then they can be added to your list of available subcontractors and invited to bid on projects.

Looking to upgrade your prequalification process? Subcontractor prequalification software may be the key. It can help you track application status, remind subs when it’s time to reapply, and store vendor data for easy retrieval.

About PlanHub:

PlanHub is a leading provider of comprehensive bid management solutions for the construction industry. Our platform simplifies and streamlines the bidding process, connecting subcontractors and general contractors to facilitate collaboration and drive project success. With a commitment
to innovation and empowering our users, we continue to revolutionize the construction industry with cutting-edge features and a user-friendly experience.

Be the first to know

PlanHub insights, resources, and news, sent directly to your inbox.

    planhub
    planhub icon

    Data and Deep Insights

    We make construction smarter by connecting with the right people, at the right time, for the right project.

    With our technology and data intelligence, we empower construction professionals to easily build the right business relationships, streamline pre construction processes, and make efficient decisions.

    From competitive intelligence in each project allowing you to know how many other contractors are downloading or bidding to insights as to contractors’ performance, we provide the data you need to lead your business to success.

    By providing faster, simpler, and unmatched data insights in each step of the pre construction process, PlanHub helps your business lay a strong foundation for the success of the rest of the construction process.

    planhub icon

    Bid Leveler & Proposal builder

    Comparing bids to one another has never been easier. Users can now see bids side by side, compare bid amounts, and review subcontractors’ certifications and qualifications all in one place.

    Bid Leveler’s apples-to-apples approach allows you to easily drill down and see detailed, easy-to-scan cost breakdowns. Indicate bid preference, hide bids that don’t meet your needs, and request needed information from subs.

    planhub icon

    Full Bid Management

    From the initial decision to pursue a project to the final bid submission and follow up, bid management plays a central role in pre construction.

    Effectively managed bids during the preconstruction phase set the stage for a successful project execution and satisfied clients.

    Streamline bid management from project posting to estimating, bidding, and awarding in one place with easy project posting, project-contractor automatic matching based on trades, location, and qualification with PlanHub.

    Use bid planner, bid builder, bid leveler, and award tools to always know what’s going on with each project and bid.

    planhub icon

    Estimation and TakeOff

    Let’s face it—time is money. And the more time it takes to perform takeoffs and submit bids, the more you risk losing out on valuable revenue opportunities. Manual methods and locally installed desktop software slow your takeoff process, and many digital solutions currently on the market can be overly complex and not user-friendly. 

    Build faster takeoffs, get more bids out the door, and win more projects. Forget pen and paper, outdated desktop software, and overly complicated digital takeoff solutions. PlanHub’s easy-to-use Takeoff tool helps you and your team build accurate takeoffs faster, minimize errors and material waste, and win more projects that boost your business growth. Performing your takeoffs with PlanHub allows you to:

    • Streamline and integrate your process: Perform your takeoffs in the same platform you use to manage your network and bids.
    • Avoid costly estimating errors: Get better accuracy with digital tools instead of traditional, mistake-prone pen and paper.
    • Collaborate easily: Share and work with your team, no matter where you—or they—are located.
    • Submit more bids and win more projects: Get quality bids in front of general contractors faster and get ahead of your competition.
    planhub
    planhub icon

    Document Management

    Organize, store, and manage various documents, blueprints, drawings and other information related to projects before the actual construction phase begins.

    This phase is crucial for setting the foundation of a successful construction project, and effective document management plays a significant role in ensuring that all necessary information is accessible, accurate, and up-to-date to all interested parties.

    Access, review, work on, and share large complex documents in one platform with amazing speed. From project definition, drawing management, takeoff, estimation, bid management, and contracts, everything happens in PlanHub.

    planhub crm
    planhub icon

    CRM

    Be part of a construction professionals’ ecosystem that enhances collaboration, streamlines project management, and fosters smart relationships between companies, construction professionals, and projects.

    Enjoy seamless communication, build strong relationships, and streamlines project management. By leveraging the power of connections and collaboration, we enhance efficiency, save time and resources, and drive collective growth in the industry.

    planhub network
    planhub icon

    1M+ pre-qualified network

    PlanHub is the leading platform that connects companies, construction professionals, and projects in the pre-construction industry, focusing on building and developing meaningful relationships to enhance efficiency and productivity.

    We have integrated general contractors, subcontractors, and material suppliers’ workflows in one platform to simplify the complex back and forth usually present in preconstruction. By allowing all interactions to be done through PlanHub, tracking projects and relationships is much easier, saving contractors and material suppliers time and money. Interactions in the platform are tagged and measured to provide insights to users.

    General contractors create bid packages that are shared in PlanHub as projects. They can include templatized lists of all CSI cost items as part of the new Baseline feature. Baseline allows for faster and more accurate bid requests, facilitates homogenization of subcontractors’ bids, and simplifies the comparison of incoming bids.

    Subcontractors are automatically matched with relevant projects based on their profile, preferences, and pre-qualification information saving hours of research to both sides. They can review project details, documentation, and blueprints.

    planhub icon

    High-quality projects

    Your one-stop job for qualified hard-to-find private project leads in varying stages like pre-planning, bidding, etc., and across different geographies, zip codes, or distance to your office.

    Projects include plans, specifications, bid dates, and other relevant project information.

    You can segment project leads by type of project, status, project building use, trades and sub trades, or create your own list of keywords — and be notified when one of them is found in a posted project’s documentation or plans.

    We make it simple to find projects that match your business — and make sure you are notified right away.

    				
    					<script src='https://planhub.com/wp-includes/js/jquery/jquery.min.js' id='jquery-core-js'></script>
    <script charset="utf-8" type="text/javascript" src="//js.hsforms.net/forms/embed/v2.js"></script>
    <script>
      hbspt.forms.create({
        region: "na1",
        portalId: "7063061",
        formId: "ced7254f-5c61-49b9-9ce0-6f870b79a958"
      });
    </script>
    				
    			

    Get the report!

    From the very beginning, PlanHub has been a place where people can do meaningful work and build strong relationships.

    Come grow with us! We’re building innovative technologies that simplify preconstruction for everyone.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.

    Create quicker, improved takeoffs effortlessly. PlanHub’s Takeoff Core aids your team in accurate, faster estimates, minimizing errors, and driving business growth.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.