1 Contractor Pre-qualification

2 What Is Contractors PQ? Screening construction contractors according to a pre determined set of criteria in order to determine their competence or ability to participate in the project bid.

3 Awarding Authorities Should Verify That the Bidder Has: Adequate financial resources, experience, personnel resources, and equipment to perform the task. The ability to comply with the required performance and time schedule.

4 Benefits of PQ Avoiding overburdened of the contractor. Elimination limited financial sources contractors. Only the qualify will stay. Protecting the contactor. Speeding devaluation & awarding process. Moving from subjectivity to objectivity.

5 Tenders PQ

6 Contractor Data Sources: 1. Internal: Reports,documents,..Etc. 2. External: Questionnaire filled by the contractor. Additional sources (banks, suppliers,..Etc). Site visits to currently projects done by the contractor.

7 Typical Questionnaire Includes: Introduction: a brief description of the project. Organization: classification and company’s organizational chart. Financial resources: financial capability of the contractor. Physical resources: contractor manpower, equipment, …etc. Experience: contractor experience on similar projects.

8 Contractor PQ Process

9 PQ Elements 1 )LITTER TO CONTRACTORS (invitation) 2)PRE-QUALIFICATION FORM: A) Information for the contractor: i)Objective and scope of work ii)General information 1)Degree of eligibility 2)Formation of partnership or joint venture 3)Bonding capacity 4)Official language 5)Supply materials

10 PQ Elements Cont.. 6)Questionnaire submission 7)Beginning and duration of construction B) PQ questionnaire: i)Identification of the contractor ii)Contractor performance iii)Contractor’s equipment iv)Construction ability v)Completion ability vi)Client relationship C)Certification and waves

11 Contractor Rating Strategies: A) dimensional weighting strategy: Contractor Selection Criteria W E I G H T (%) X Contractor ABC YX*YY Y Experience in Completion of Project on Schedule Present Workload & Capability to Support Project Availability of first-Line Supervisors Total Score

12 Contractor Rating Strategies Cont.. B)two-step pre-qualification: Allow to eliminate unwanted contractors. Contractor to satisfy selected screening dimensions. If passes, use DWS with more specific criteria.

13 Paired Comparison Criteria Weighting:

14 Evaluation Matrix:

15 Model Philosophy: Uses DWS based on multiple-criterion decision-making. Approach assumptions: Impact for each criterion ( 1unsatisfactory to 10 excellent). Obtain numerical value from PQ questionnaires. Addition or deletion of decision parameters have no dependency of model ’ s parameters.

16 Model Philosophy Cont..

17 Model Calculation: a. Calculate the mean impact for each DF included in each CDF. b. Calculate the DF weight to each DF from equation: Where: wij = the weight of the DFj associated with the CDFi. DFMIij = the mean impact of the DFj associated with CDFi, zero (no impact) to four (very high impact).

18 Model Calculation Cont..

19 Model Calculation Cont..

Example:

Example Cont..

Result: Contractor A has the highest score followed by Contractor C then contractor B.

23 Model Advantages: Simple and understandable. Provides a systematic approach for all candidate evaluation. The calculated aggregate weighted score for each contractor provides a basis for comparison.