IACCM Contract Management Forum

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2014-06-11 18:02:37

pre-qualification of contractors

To pre-qualify contractors to be in the bid-slate of construction and service procurement, the technical team require copy of contract (first page, value, period and scope) and many contractors are reluctant to provide such documents due to confidentiality and signed NDA. They provide record of experience, reference details and certificates. Can anyone refer me to the best practice in the pre-qualification exercise.
 •   2014-06-13 17:38:15
I can understand contractor reluctance and potential difficulty. Do you allow contractors to share details of their contracts with you?

In my view, best practices are to ask specific ques tigons regarding contractor's performance under contracts, focusing on areas you care about. You might also require references. In both cases, you might make clear that you are depending on these representations.
 •  Praxair Inc. a member of Linde Group  •   2014-06-17 10:02:39
The contractors are right to push back on your request for obvious legal reasons. I'll suggest that you ask them for references from their past and present projects and get in touch with those references that are of interest to you in order to confirm the contractor's performance on the projects
 •  Kaman Precision Products  •   2014-06-19 20:08:03
I have to agree with the post that talks to requiring past performance as well as reference checking. As a sidebar, if you are in the process of pre-qualifying a contractor how well defined can the period and scope be? There are times in my current role where we are in the pre-qual stage and know nothing more than a rough order of magnitude and have a rough period of performance. Sometimes these are not nailed down until 50% CD or later.
 •   2014-06-26 09:46:49
It depends on the objective of your pre-qual process. For our company, pre-qual only identifies if a prospective bidder should/should not receive an RFP across just 5 key risk areas (safety, finance, quality, technical, legal. Suppliers answer either yes/no or provide a number to each pre-qual question. We then allow these suppliers to attach any documents they believe strengthens or clarifies their answers. We do not force them to provide confidential contract info to us at this time. That might come later in either the RFP or negotiations.

If you are requesting specific contract sections from your bidders, you are most likely doing much more than pre-qualifying them. Before asking the supplier to provide contract sections, you should discuss this type of request with your legal counsel and counsel of the country in which the supplier resides.
 •  ATCO Electric  •   2014-06-26 22:12:45
From my experience, we have been asking contractors to provide contract completion letter or reference letter from previously completed jobs. Experience letter from similar industry are scored higher than others. Some smart contractors take good reference letters from their satisfied clients and use it freely for pre-qualification, which same time helps the project owners in their pre qualification process.
 •  ERATRUST.PL  •   2014-06-30 13:52:22
Hi Khalid,
As the vendor I would push back as already mentioned by other contributors here. Asking for references is fine, asking for value of contracts delivered to check whether a vendor has a capacity, skills, experience is also acceptable. Vendor's contracts and even customer's portfolio is simply treated as a trade secret. Unless a customer provides the vendor with references the contract very often prohibits a disclosure that the deal was done.
 •  Nexen Energy ULC  •   2015-03-02 14:44:58
There is an organization in Alberta Canada called Construction Owners Association of Alberta. I am a co-chair of the Contracts Committee and we have a number of best practices under our committee and are developing several more (like a standard format for a EPC scope of work).
One of our best practices is for Contractor Prequalification. I think you will find it of some help to you. the link is www.coaa.ab.ca/
Let me know what you think.
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