On Friday, December 4, 2009, revised MDOT Administrative Rules Governing the Prequalification of Construction Contractors became effective. These rules define the administrative procedures MDOT uses to “qualify” contractors wanting to bid on projects let by the department.
MDOT initiated the rule changing process in 2008 to incorporate language that would allow them to advertise projects without disclosing the Engineer’s Estimate. This revision was being made on the recommendation of the Office of Commission Audits that MDOT conduct a pilot study to evaluate bids received when the Engineer’s Estimate was not disclosed compared to those received when the Engineer’s Estimate was disclosed. With the administrative rules revised, MDOT can now proceed with the recommended pilot study.
Seeing this opportunity to pursue other revisions to these administrative rules, MITA was successful in proposing and negotiating two rule changes that could positively impact a significant number of contractor members at both ends of the prequalification spectrum. Those rule changes are:
- Contractors with an overall financial rating of $10 million or greater can choose to file an application for prequalification (renew) every 2 years, rather than annually. (Contractors choosing to renew on a 2-year cycle can save the cost of one audited financial statement compared to an annual renewal.)
- The overall financial rating allowed without an audited financial statement has been increased from $1 million to $2 million. (Contractors with an overall financial rating between $1 million and $2 million will save the cost of the audited financial statement.)
MDOT’s Contractor Announcement concerning these rule revisions provides specific instructions about filing 2010 applications for prequalification for contractors with a current overall financial rating of $10 million or greater.
If you have any questions about these administrative rule changes that relate to MDOT prequalification, contact Glenn Bukoski, Vice President of Engineering Services at glennbukoski@mi-ita.com or Doug Needham, Director of Technical Services at douglasneedham@mi-ita.com or call them at the MITA office at 517-347-8336.
