Title
Resolution Authorizing the Use of a Prequalification Policy for Bidders on Construction Contracts
Body
Department: Engineering & Inspections
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Kenney McDowell 373-4578
Contact 2 and Phone: Tom Carruthers 373-2320
PURPOSE:
The Engineering & Inspections Department has determined that certain construction projects will be more efficiently constructed if all interested bidders are required to be prequalified for the work. A policy to be uniformly applied to all prequalified contracts has been developed. City Council authorization of the policy is requested.
BACKGROUND:
Prequalification is used to identify contractors that have the management skills, financial resources, and construction experience that will be required on a construction contract. Projects that benefit from prequalification are very large projects, those with very specialized skills, or those with severe schedule constraints. Prequalification is particularly relevant in the Construction Manager at Risk (CMAR) delivery systems as the CMAR must rely on proven performance and pre-qualify its first-tier sub-contractors to deliver the project at the Guaranteed Maximum Price (GMP). The prequalification process can protect the City, the contractor and the public from unnecessary expenses and construction delays. The City has used prequalification in the past and would like to continue the use of prequalification in the future.
During the latest legislative session, G.S. 143-135.8 and G.S. 143-128.1 were revised to establish requirements for local governments to follow when using prequalification to ensure transparency, objectivity, and fairness to all potential bidders. The revisions to G.S. 143-135.8 and G.S. 143-128.1 now require that the City Council adopt an objective city-wide prequalification policy applicable to all construction or repair work prior to advertising the contract for...
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