Architects & Engineers Articles - Fundamentals of Prequalification for Architects and Engineers

The Stimulus Package

Substantial new infrastructure funding and a repeal of the 3 percent withholding mandate were included in the economic stimulus legislation passed by the House of Representatives recently. The bill offers over $100 billion for infrastructure and public buildings.

The considerable investment in the nation’s infrastructure is expected to significantly boost jobs and increase demand for skilled architects and engineers. Major infrastructure provisions in the bill include: $27 billion for highways and bridges; $8.4 billion for transit; $1.3 billion for airports and aviation projects; $4 billion for wastewater improvements; $3.1 billion for passenger rail projects; $2 billion for drinking water projects; $4.2 billion for energy efficiency and conservation block grants; $6.7 billion for GSA federal buildings; and $16 billion for school construction and modernization. (These amounts are subject to change as the bill’s details have yet to be finalized.)

The only challenge that comes with this package is to get prequalified before you bid on a job. The pre-qualification process enables architects and engineers to display the required experience, capability, and capacity to compete for the most lucrative jobs in the marketplace. Prequalification with states and federal agencies is a must and can be done online in most cases.

Prequalification

There is no one right way to go about prequalification, but there are some universal considerations, such as:

• Do you have a Dun & Bradstreet number (Can take up to 24 hours to get)?
• How long has the company been in business?
• How long have the current owners and managers been with the company?
• Do you have the proper licenses and license numbers?
• Is the business involved in any lawsuits (or has it been recently)?
• Does it possess adequate insurance coverage?
• Does it have a healthy financial history?
• What is your company’s bonding capacity?
• What were the size and scope of its previous projects?
• Can your company provide suitable trade, financial and business references?
• Do you have an overhead rate, or have you had an overhead audit performed?

Most states and government agencies require consultants to submit an independent audit report of their annual fiscal year indirect cost and resultant overhead rates. By visiting the state and federal government websites, you can easily find the Category Descriptions and Requirements for Prequalification unique to the state where your project resides.

Find out how our expertise in accounting for architects and engineers can add value to your business. Email us or call us at 1 (888) 875-9770.

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