How are general contractors and subcontractors prequalified for bidding?

Under M.G.L. c. 149, §§ 44A to 44H, municipalities are required to prequalify general contractors and subcontractors for the bidding of any public building project estimated to cost $10 million or more. This process, known as prequalification, is highly regulated and relies on detailed procedures and legal requirements that all municipalities must follow.

The detailed legal requirements for prequalifying general contractors and subcontractors are found in M.G.L. c. 149, §§ 44D½ and 44D¾, and DCAMM regulations 810 CMR 9.00 and 10.00 [1]These legal requirements include strict rules that govern the evaluation of general contractors and subcontractors for the purpose of prequalification. These rules are summarized below, but this summary is not comprehensive. For a complete enumeration of the state's prequalification requirements, please read the provisions of M.G.L. c. 149 and the DCAMM regulations noted above.

As part of the prequalification process, municipalities are required to use standard forms, prescribed by DCAMM, to solicit formal applications from general contractors and subcontractors. Municipalities are required to evaluate these applications, also known as Statements of Qualification (SOQs), using a 100-point rating system and a very specific set of evaluation categories and subcategories, collectively known as evaluation criteria. 

Both the rating system and the evaluation criteria for prequalifying general contractors and subcontractors are prescribed by M.G.L. c. 149. General contractors and subcontractors must meet the following requirements to be prequalified based on their SOQs:

  • Achieve a minimum total score of 70 points, and
  • Achieve the minimum score required in each evaluation category (see 1-3 below).

While municipalities have some discretion in allocating points among subcategories, the maximum and minimum score of each evaluation category are prescribed by law. Any general contractor or subcontractor meeting these scores, as well as meeting the additional requirements of state law, must be prequalified.  

Below is a summary of the evaluation categories and subcategories prescribed by M.G.L. c. 149. Different requirements for contractors and subcontractors are noted.  

  1. Management experience (maximum of 50 points possible; minimum of 25 points required for approval)
  • Business Owners: Name, title and years with firm of the owner(s) of the business.
  • Management Personnel: Names, title, education and construction experience, years with firm and list of projects completed by all management personnel who will have any direct or indirect responsibility for the building project.
  • Similar Project Experience: Project name(s), description, original contract sum, final contract sum with explanation and date completed of similar projects. Your jurisdiction has the discretion to include in the RFQ a description of what you consider a “similar project.”
  • Terminations: A list of any projects on which the firm was terminated or failed to complete the work, including an explanation for each instance listed.
  • Legal Proceedings (General Contractors): A list of all legal or administrative proceedings currently pending against the general contractor or concluded adversely to the general contractor within the past five years that relate to the procurement or performance of any public or private construction contract.
  • Legal Proceedings (Subcontractors): A list of all legal or administrative proceedings currently pending against the subcontractor or concluded adversely to the subcontractor within the past three years that relate to the procurement or performance of any public or private construction contract. Legal proceedings do not include any actions that primarily involve personal injury or workers’ compensation claims, or where the sole cause of action involves the subcontractor’s exercise of its rights for direct payment under M.G.L. c. 30, § 39F.
  • Safety Record: The three-year history of the firm’s workers’ compensation experience modifier.
  • Compliance Record (General Contractors): Information on, and evidence of, the firm’s compliance record with respect to minority business enterprise and women business enterprise inclusion goals and workforce inclusion goals, if applicable, on building projects within the past five years.
  1. References (maximum of 30 points available; minimum of 15 points required for approval)
  • Project References: A list of references from owners and architects for all “similar projects” provided in response to the third item listed under “Management Experience” (above), including project names and names of the owners and architects, with a current address, telephone and fax number, and contact person for each project.
  • Credit References: A list of at least five credit references, including the telephone and fax numbers of contact persons from key suppliers, vendors and banks.
  • Public Project Records: A list of all public building construction projects subject to M.G.L. c. 149 completed during the past three years, including the owner’s name, current address, telephone number, fax number and contact person for each project.
  1. Capacity to complete projects (maximum of 20 points available; minimum of 10 points required for approval)
  • General Contractors: An audited financial statement for the most recent fiscal year.
  • Subcontractors: Annual revenue for the prior three fiscal years.
  • Revenue under contract for the next three fiscal years.
  1. Mandatory requirements for which no points are assigned
  • A commitment letter, issued by a surety company licensed to do business in the Commonwealth and whose name appears on United States Treasury Department Circular 570, for payment and performance bonds indicating that the contractor or subcontractor is bondable for 100 percent of the estimated contract or subcontract value. If the commitment letter is written by another party on behalf of a surety company, the commitment letter must be accompanied by an authorized power of attorney from a surety company.
  • General Contractors: A Certificate of Eligibility issued by DCAMM showing single and aggregate capacity ratings sufficient for the project, and a completed Update Statement.
  • Subcontractors: A Certificate of Eligibility issued by DCAMM and a completed Update Statement.

[1] DCAMM is the Massachusetts Division of Capital Asset Management and Maintenance.