Role of architects and consultants in pre-qualification process of industrial projects

What is pre-qualification? 

Pre-qualification is assessing vendors/ contractors/ suppliers against predetermined criteria. In industrial projects, architects and consultants help clients to prequalify the vendors. Only those who prequalify participate in the tender.

Is Pre-qualification needed in industrial projects? 

An industrial project is a challenging multi-agency activity. Additionally, it requires coordination between all the agencies. If any agency fails to deliver, there is a good chance that the project goals fail.  So, it is imperative to pre-qualify vendors. Pre-qualification helps in understanding the vendor and his capabilities better. Pre-qualification helps the clients/ industrial architects and consultants in the following: 

1. Deciding whether the vendor can complete the project. 
2. Understanding whether the vendor is compliant with the statutory requirements. 
3. It helps in getting information about the tools, tackles, equipment, production capacity and workforce to complete the project. 
4. It provides an opportunity to see the vendor’s customer list and previous projects. References help in understanding how the vendor has done in the earlier projects. 
5. Pre-qualification reduces the chances of contract failures.
6. In projects where there is a large group of vendors, pre-qualification helps.
7. When the tender is large, the process of pre-qualification is useful. 
8. Pre-qualification is helpful when there are multiple projects. 

When is Pre-qualification done? 

Pre-qualification in industrial projects is typically before the tender stage. As a result, pre-qualification helps narrow the list of vendors to those most suited to the project.  However, pre-qualification doesn’t mean that vendor’s bid is accepted. The submitted bid goes through technical and commercial evaluation. 

What does the pre-qualification document contain?

When the architects and consultants in industrial projects send a request for pre-qualification, the primary intent is to gather information from the vendor. The architects and consultants work with a checklist of the information needed. Usually, the pre-qualification document requests: 

1. Business Information: Name, address, registered address, branch offices, factory address, contact person, type of company. 
2. Financial Information: Balance Sheet, GST and IT details
3. Statutory Compliances: ESI, EPF, Professional Tax etc. 
4. Safety records
5. Human resources: Team list, management team, safety team
6. Equipment and tool list
7. Projects List: current projects, size of projects, the scope of work, dates of completion, customer appreciation letter, references

The pre-qualification process goes a long way in the success of the project. That is why, clients, architects and consultants in industrial projects prequalify vendors each and every time.