process of prequalification

process of prequalification

Abstract

Prequalification is critical, especially for the contractors, and it must be carried out before the tender is given out. Any company that engages in prequalification requires the best experts to do the projects. Most importantly, prequalification reduces the number of those contractors that are not qualified for the job. In other words, this is a technique used to narrow the field or vacancy to those who are well skilled and have all that it takes to be a contractor. When looking at the construction projects, it is advised that the owners should look for the best contractors who are aware of all the terms and conditions in the construction industry. The reason for doing this paper is to ensure that people are aware of the criteria of contractor prequalification in a construction company. This topic is vital not only to the individuals in the construction industry but also to those willing to construct buildings. Several things are addressed in this paper that are essential during the process of prequalification.

Literature Review

According to Hale et al. (2019) in the past, the selection of the best contractors was done through bidding, where in most cases, the contractors with the lowest bids were given the jobs. The lowest bid meant that the contractors were going to do the construction with a minimum amount of money (Hale et al., 2019). Currently, things have changed since the owners are more interested in the results and not the amount of cash being required by the contractors. Russell et al., (1990) argues that when looking at most of the old buildings, there is a significant difference between them and the new buildings. The new structures are more attractive compared to the past because the owners are now using prequalification before issuing their projects to the contractors (Russell et al., 1990).

Financial stability

Finance is vital for any project, and that is why the owners always look for money before starting any project (Pryima et al., 2019). Russell & Skibniewski (1990) stated that the contractors, on the other hand, must be financially stable, which implies that they can handle all the financial issues without involving the owner provided all the expenses and the money used are written down, and the receipts are well kept. In other words, the contractor should formulate a set of methods that should be used for the assessment and management of the cost parameters. According to Karminsky & Rybalka, (2019), being financially stable, there are several factors to be considered, such as the bank statements, credit ratings, and the financial statement. Having some financially stable contractors, Pryma et al., (2019) argue that it means that they can handle any issue related to finance and banking. An example, if a company decides to hire contractors who are not financially stable, they might take advantage of their position and steal the money meant for the project for their gain (Karminsky & Rybalka, 2019).

Technology

Technology is applicable in the construction industry; there are several things about technology that needs to be considered during the requalification process (Kereri & Turner, 2018).  When looking at the current world, things have changed due to the shift from analogue to digital. This implies that most of the operations are carried out by machines and little manpower. According to Kereri & Turner, (2018) the contractors should be able to use equipments such as drones, mobiles, building information monitoring, 3D printing virtual reality and wearables, and artificial intelligence, among others. When looking at mobile technology, phones are not only used for communication in the construction industry but also for other reasons (Holt et al., 1994). There are a few apps that are used with smartphones and tablets that enhance portability and accessibility. The other thing is the drones, which are significantly used in construction sites. Nnaji et al., (2018). Stated that the best thing about this equipment is that they can carry out surveys quickly compared to having people on the ground. Most interesting is that they have a high-resolution camera that can see things clearly on the ground.

Additionally, there is the use of BIM, which is commonly known as building information modeling. This is a design that has been developed by computers. It is more of a software that can make 3D designs of how the construction should look like (Nnaji et al., 2018). Currently, 32.7% of the contractors are using BIM software, especially in the U.K. Virtual reality is another type of technology that is primarily used with BIM to help when doing complex projects (Holt et al., 1994). Wearables are applicable when it comes to job safety, a good example, in this case, are the Daqri smart glasses that have a wide-angle camera and other features that allow workers to collect data in their working environment (Nnaji et al., 2018). The glasses display everything that the workers need to do, which reduces the errors and makes the job faster. Currently, 3D printing is the most used in construction technology (Wu et al., 2016). The best thing about 3D, according to Wu et al., (2016) is that the building materials are printed and transported to the sites where they are used immediately. With this technology, waste is reduced on the site and save on transport costs and storage of the materials. With artificial intelligence, the contractors can use robotics which can carry out some of the difficult operations such as bricklaying, without any human interactions (Kereri & Turner, 2018). With this, there can be an increased safety at the job site, which can improve workflow.

Experience

Generally, construction is a mentally and physically challenging job but financially satisfying (Sandberg & Albrechtsen, 2018). Experience is essential when it comes to construction projects. There are a few skills that are required. The first one is the physical skills where the person must be healthy and able to lift heavy objects. According to El-Sayegh et al., (2019) when it comes to the construction project, there is a lot of lifting heavy objects, which means that the people involved must be strong enough. Another type of experience is that individuals must have some office skills (Vovchenko et al., 2017). A contractor should have some office skills such as record-keeping, budgeting, and planning. Vovchenko et al., (2017) stated that other skills include word processing, spreadsheets, telephone etiquette, communication skills, organizational skills, among others. With this skill, the contractor can be able to work from the office and carry out all the tasks without having problems. Another skill considered is management or leadership. A good contractor should have some leadership skills because he/she is the head of the other workers (El-Sayegh et al., 2019). Some of these management skills include project management, where they should be familiar with the steps which are followed when carrying out a project. Other skills include team management, compliance, quality assurance, and collaboration.

Design and planning is vital for any construction projects so that it can be easier to spot any problems (El-Sayegh et al., 2019). There are several designs and planning skills to be considered, such as giving and following instructions. This is because most of the time, the constructors are supposed to give directions to the other workers on what they should do and not do. Vovchenko et al., (2017) argues that another thing is making estimations because sometimes they need to estimate the materials that will be used, the duration, and the manpower required. Construction report is another consideration, according to El-Sayegh et al., (2019) where they should provide the report after an agreed period. The report contains all the information about the construction, which includes all the expenses (Sandberg & Albrechtsen, 2018). Codes and regulations are some of the essential skills to be observed. The government always set up some regulations to be followed by the contractors during the projects (Vovchenko et al., 2017). Some of the factors to be considered include environmental awareness, attention to details, safety measures, among others. According to Vovchenko et al., (2017) environmental awareness is a huge concern bearing in mind the current situation with global warming. The construction industries need to observe several rules to enhance environmental safety not only for the workers but also for the community around the construction sites.

Staff availability

Staff availability at the construction site is another criterion used during prequalification. In most of the construction tasks, the contractors are supposed to come with their workers (Shokri-Ghasabeh & Chileshe, 2016). This implies that it is the work of the contractors to ensure they have enough workforce for the jobs. According to Afshar et al., (2017) to be given the contract, the staff must be available when required to visit the site. There are several factors to be considered when selecting the team. Tripathi & Jha, (2019) argue that one is that the workers should be reliable, which means that the contractors can trust them with cash and expect them to carry out all the activities that might require some cash. Another thing is loyalty. This is more of being committed to their boss (Tripathi & Jha, 2019). Commitment means that they can do any task even in the absence of cash provided they get paid in the future. Loyalty is all about keeping secrets and following the instructions given by the contractors. Another critical aspect that the staff should consider is teamwork (Afshar et al., 2017). They should work together as a team to increase productivity. Afshar et al., (2017) stated that it is through teamwork that employees got to learn new things and understand each other. Thus, it is the work of the contractor to ensure that his/her staff knows how to work in a team.

Safety performance

The safety of employees is a key consideration in any construction project (Zhang & McDermott, 2017). This is because the staff must put their lives at very high risk.  According to Zhang & McDermott, (2017) an example, when constructing a building that has several floors, and the workers have to carry the construction materials since not all the tasks can be carried out by the machines. Lee et al., (2018) stated that In most of the construction sites, accidents are prone to occur from time to time; hence, it is essential for the workers to be well prepared. During the prequalification process, the contractors must have some safety tips. One of the things to consider is awareness (Kong & Luo, 2018). This means that before any task can be carried out, the contractors must create awareness for the workers by ensuring that they are informed of the dangers that are likely to occur throughout that period. The second thing is training, where the staff must be taught about the safety tips before starting the work. This implies that the contractors must train the new workers on some of the risks which might occur and how such risks should be handled (Lee, et al., 2018). Those workers who have experience working in the construction sites must not be left aside since they need to refresh their knowledge by attending the training. Since accidents are more likely to occur, communication is vital and is one of the safety measures (Zhang & McDermott, 2017). Workers should have communication devices such as headsets and smartphones that allow fast communication so that in case of an accident, actions can be taken immediately.

Past Performance

During the prequalification, past performance is one of the best criteria to use when selecting the contractors. To enhance this practice, the contractors need to present their past jobs, which act as evidence that they are not new in the construction industry (Coetzer et al., 2017). Several things can be considered by the owners, such as the capacity of the firm. Turkan et al., (2013) stated that the construction owners have a good chance to compare the different designs which have been done by the constructors because this can enable them to select the best depending on their previous constructions. The contractors who have long experience in the industry are more likely to be hired since they are familiar with what is expected during construction (Turkan et al., 2013).

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