Contractor Qualification Statement Defined
Contractor Qualification Statement, or "CQS," is a commonly used tabular overview summarizing a contractor’s experience, and is typically submitted by a contractor to potential project owners together with their bid proposal or other pricing information. In some instances, it may be requested directly from a potential project owner, or it may be submitted in response to a Construction Management open bid listing. This summary can also be requested and utilized for the purposes of a post-bid canvass, where a contractor’s experience is evaluated against the needs of the particular project being considered.
Traditionally, Contractor Qualification Statements have been prepared on AIA Form A305, as more fully discussed below. However, with the increase in construction contractors across all trades utilizing electronic or web-based input forms, a CQS can be easily edited or tailored to fit the particular submission requirement or project needs. Regardless of the format, whether on AIA form A305 or another form, any Contractor Qualification Statement essentially contains the same information.
A CQS is a document that is intended, not surprisingly, to summarize a contractor’s qualifications. This information can include details related to the contractor’s financial capabilities or limits , previous relevant experience, and even references. Certain industries such as the renewables, energy and heavy construction arts may require additional submittals, in order to satisfy certain bonding and insurance requirements.
By way of example, contractors that intend to submit a bid on a public project typically must complete various required forms so that it may be properly considered for award of the contract for such project. For such public projects, completed qualification statements are often included as part of a Request for Proposals ("RFP") process, meaning that a contractor wishing to be considered for a contract award must properly complete a qualification statement and submit it along with its bid proposal.
In the context of the construction industry, a CQS can require specific types of professional, legal, and financial information, all of which is ultimately intended to serve as an overview of the contractor’s qualifications to perform the desired work. One of the most widely used forms of the CQS is the AIA form A305. However, regardless of the form used, the overall purpose of the CQS is the same: to provide a contractor with an overview of its general qualifications to perform the proposed work.
Essential Elements of Contractor Qualification Statements
A contractor qualification statement is a document that allows project owners to prequalify a contractor prior to making bidding decisions. The contractor qualification process is an attempt by owners and plan designers to gain information about a contractor in order to determine if the contractor has the ability to complete the work on time and in accordance with the contract documents. Typically, the contractor will be required to undergo the qualification process before it is awarded a contract for the work.
Contracts and agreements frequently require contractors to submit prequalification statements as a condition precedent to submitting a bid for a particular project. This is particularly so when the project involves public funds. Many times, however, project owners do not desire or have the time to conduct due diligence on a contractor with whom it works on a regular basis. In such instances, owners can simply have its regular contractors fill out a template contractor qualification statement annually or biannually. The resulting qualification statements can then be reviewed by the owner on an ongoing basis.
When a contractor qualification statement is required for a specific project, it is not unusual for the contractor to be required to complete many pages of forms in order to respond to the questions posed. In general though, this sharing of information is intended to allow the owner (and the architect) to determine if the contractor has (1) sufficient financial resources, (2) sufficient experience, (3) adequate safety and other procedures, and (4) adequate staffing to perform the work. The prime goal, of course, is to permit the contractor to be included as a prequalified bidder.
The contractor qualification statement may contain (but is not limited to) the following information:
How to Create a Powerful Qualification Statement
A comprehensive contractor qualification statement may be prepared by following these steps:
Review RFP Requirements: When entering into any prime contract with the Government, FAR part 9 requires that the Quoter meets the responsibility standards. Among these standards are that the Quoter "has adequate financial resources to perform the contract, or the ability to obtain such resources."
Third-Party Documentation: The Quoter must support this with third party documentation. Typically, the Quoter would provide a banker’s letter, financial filings, bonding information, and insurance policies. In order to have a more sophisticated and stronger Qualification Statement, it is important to review the RFP requirements and tailor your Qualification Statement to the requirements of the RFP.
Be Concise and Focused: It is important that the Qualification Statement be concise to the requirements in the RFP. "Less if more" when it comes to documents and attachments. Make sure to focus on the experience outlined in your Qualification Statement to what the Government is looking for. Under FAR Part 10.001, market research can require suppliers to provide information concerning their qualifications. Subpart 9.6 governs the Contracting Authorities which leads us to consider the due diligence surrounding "Responsibility." Anticipate how you will answer Q&A’s and be proactive in your response. If your company has any pending litigation that could impact your ability to perform on the contract, or if your company has been suspended and debarred from performing contracts, disclose this information in your proposal.
References: Always include past performance references. Remember some of these references do not need to be prime contracts. A subcontractor’s performance will directly affect the prime on certain contracts. Also, make sure to include the name, phone number, and email address of the references.
Avoiding The Most Common Qualification Statement Pitfalls
With all the contractor pre-qualification forms, and the increasing number of local requests for ‘Statement of Qualifications’, I thought I would add a post with tips on preparation of these forms. This post is limited to the standard NIGP FORM #5A, and its variant from UPPCC. These forms are perhaps the most common government pre-qual forms, although I have also included some of the common mistakes that I have seen with local ‘Statement of Qualifications’ (not standardized forms). Today, the focus will be on some common mistakes contractors make, and the next post will address some tips to help you prepare successful submissions. A careful reading of the following instructions may help contractors to reposition their focus if they are not having success with their submissions. Organizations may be very clear with what they are looking for in the instructions and submission requirements . However, contractors often focus on other areas like the evaluation criteria or "for additional information", completely overlooking the instructions.
Here are some common mistakes:
- Incorrect document type.
- Wrong form number.
- Wrong submission deadline.
- Failing to follow submission formatting and requirements (font, length of submission, binders, electronic vs hard copy):
- Incorrect response math or calculations:
- Owner signature not provided:
- Submission to incorrect or wrong address:
- Failure to provide requested references:
- Page numbering not provided or not as required:
- Failing to sign the bottom of the last page.
- Not including the Certification of Offerors & Form of Non-Collusion Affidavit (Form 5.1) as a part of the submittal.
- Failing to provide insurance and bonding for the form number designated:
The Advantages of a Strong Contractor Qualification Statement
A strong Contractor Qualification Statement sets your company apart from all the other competitors. A well-prepared statement can help your organization obtain more contracts and bigger projects. Beyond that, it shows potential clients that your company is professionally managed and staffed with qualified employees. The right qualification statement increases your chances of being invited to interview and discussing more details about a specific bid. For contractors that do not have a Construction Manager, these qualification statements are extremely important. They are an opportunity for you to shine beyond your current experience level and highlight future team members. By including details about the personnel that you’re likely to assign to that contract and their vast resume, you’re demonstrating to the bidding authority that your company is well-managed and has access to reputable experts in the field. A strong qualification statement can also save you time, and possibly money. If your company hands in a complete, well-written qualification statement at the time of the bid, you will likely be saving the professional team reviewing the bids time. This will give them a better impression of your company and will hopefully increase the chances that you can negotiate contracts with them more often in the future. Finally, a solid qualification statement can be an excellent marketing tool. A detailed overview of your company, its services, personnel, and past performance, provided in an easy-to-understand and visually appealing format will give you a competitive edge in the market. It provides a resource to review not only your statistics, but more information about your organization as a whole.
Qualification Statement Samples and Templates
As previously discussed, a Qualification Statement should comprise a general introduction, followed by the specific information requested by the Owner, and then a summary of the contractor’s qualifications. As the owner may not use the same consultant to review the statement, it is advisable to submit the qualification statement to two or three individuals to review for clarity.
There are several templates and forms available online so that a contractor does not have to start from scratch. The most common documents include the AIA Document A305 Contractor’s Qualification Statement and AIA Document B305 Contractor’s Qualification Statement. Note that these documents are not AIA documents , and thus are not enforceable such as the AIA Construction Documents. There are also several contractors that have posted their Qualification Statements on the internet. The following are some contractor examples found on the internet:
Sierra Construction http://www.sierraco.com/qual-statement.doc
Zekelman Industries http://sekels.com/qual.pdf
Bawnik & O’Connor, Inc. http://www.bawnikoconnor.com/Bawnik_Resume_0111-08.pdf
Stahl & Assoc. Inc. http://www.stahl-associates.com/About-Us.htm
Nextran Truck Centers http://www.nextran.net/documents/nextran-vendor-application.pdf
05 Design Build http://05designbuild.com/media/DBQ.pdf
Quality Recycling, Inc. http://qualityrecycling.com/capabilities.pdf
C.E. Bard Inc. http://www.cebard.com/Office_Qualifications.pdf
One Point Security http://www.onepointsecuritysolutions.com/Vendor_Form.pdf
