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How can a construction firm become eligible to compete for public works construction contracts in New Jersey?
Before a construction firm can compete for public works construction projects, its qualifications must be verified by the Division of Property Management & Construction (DPMC). A contractor must be classified by DPMC to be eligible to perform DPMC-administered construction work, as well as construction projects for school boards and various New Jersey public agencies.
The firm must submit to DPMC a completed Request for Classification (form DPMC-27), which fully describes the company's financial ability, responsibility, plant and equipment, organization, ownership, relationships and prior experience. This information must be evaluated by DPMC prior to assignment of a "classification," which describes the specific construction categories/trades and maximum aggregate workload level(s) for which a contractor is eligible to bid.
Each completed DPMC-27 shall include:
A certified audited (or reviewed and compiled) financial statement, with a cover letter signed by a Certified Public Accountant or Public Accountant, complete with a balance sheet, related statements of income and retained earnings, cash flows and notes to the financials. The financial statements must be in conformity with generally accepted accounting principles, and all financial statements shall be for at least a six- month accounting cycle, but cannot be more than one year old. In the event that a 10K is available, it may be submitted but must be accompanied by a balance sheet prepared by the accountant who prepared the 10K and certified by that accountant that the financial information is true, accurate, and presented within the 10K report. In the event that a company is an international firm and an IFRS-basis financial report is available, it may be submitted in lieu of a GAAP-compliant report;
A statement as to organization, demonstrating the adequacy of officers and key management personnel to undertake a project in the classification desired;
A statement as to prior experience, including the number of years of experience in the construction business;
A performance statement, including a complete record of work completed by the contractor over the past four years;
A statement that the applicant has adopted or will comply with an Affirmative Action Program for Equal Opportunity, in accordance with State and Federal laws, rules, and regulations;
A statement as to bonding capacity, including aggregate bonding limits, from a surety authorized to issue bid, performance and payment bonds in New Jersey;
If the contractor is a corporation or partnership, a statement listing all stockholders or partners owning any interest in the company; and
A statement of any other pertinent material and facts to justify the classification requested by the contractor.
Two or more contractors may form a joint venture to bid on a specific construction project. The contractors must submit a Statement of Joint Venture (form DPMC-606), which must be received by DPMC no later than 5 days prior to the bid due date for the project.
Following receipt of the classification request, DPMC will evaluate the contractor's qualifications and determine if and how the contractor should be classified. DPMC will classify the contractor as to the trade, character and dollar value of the work on which the applicant shall be qualified to submit bids. If the firm is approved for classification, DPMC will notify the firm of the results by email.
DPMC will determine a performance rating, based on evaluation of the applicant's past experience and references. A classified contractor's performance rating will be updated as the contractor completes subsequent State work.
Bidders must re-classify every 24 months in order to remain eligible to bid on public work.
The request for classification (DPMC-27) form can be downloaded from our Forms page. To receive an application by mail please forward a written request to DPMC Contractor Classification Unit, PO Box 034, Trenton, N.J. 08625-0034, or call 609-633-2725 or 609-292-8460.
After contractors become classified by DPMC, how do they find out about upcoming construction projects?
When a DPMC construction project is ready to go to bid, contractors will be notified in one or more of the following ways
Via the DPMC's Website
Via advertisements in construction periodicals and trade journals covering the construction industry in New Jersey;
In newspapers; or
By direct mailings from DPMC to firms classified in the appropriate trade(s)
These notifications will include general information about the project and instructions for picking up plans and specifications, and the deadline for receipt of bids.
How can an architectural, engineering, construction management or other construction consulting firm become eligible to compete for State-administered projects?
Before a firm can compete for consulting work on State construction projects, the firm's qualifications must be verified by the DPMC.
The firm must complete and submit DPMC's consultant prequalification form (48A), which provides comprehensive information on the management of the firm, its financial history, the type and dollar value of past project work and other related information. This information is used to evaluate firms for future DPMC projects, and to establish the maximum construction cost dollar level and the professional disciplines for which the firm is qualified. The result of this evaluation is the firm's notice of prequalification.
The New Jersey Administrative Code [N.J.A.C. 17:19-5.4 (f)] stipulates that any firm seeking prequalification must have at least one principal on its staff who has been engaged in active private practice with full financial responsibility for a period of two years immediately preceding its prequalification request.
Firms seeking prequalification are also encouraged to submit brochures, pamphlets, photos and other pertinent documentation for inclusion in their prequalification files.
DPMC will complete its review of the firm and notify the firm of the results by mail within 30 calendar days of receipt of fully completed prequalification form.
It should be noted that the prequalification level assigned does not necessarily reflect the level on which a consultant has performed for other clients. DPMC will assign a level justified by applicable overall experience, length of time in business, prior DPMC experience, staffing and management depth. Firms may increase their technical qualification for a specific project by entering into a joint-venture with one or more other firms. Each individual firm of the joint venture must be separately prequalified, and one of the firms shall have been prequalified at the level stipulated for the project.
It is incumbent upon each firm prequalified by DPMC to update and keep current all prequalification form, and to bring to DPMC's attention any major changes in the firm's status.
How are consulting firms informed about new projects requiring professional services?
The Division of Property Management and Construction may publicly solicit the interest of prequalified firms to provide professional services by advertising in one or more of the following methods:
By listing on the Division's web page
In design and construction publications and trade journals covering the construction industry in New Jersey
In newspapers
By written notice to New Jersey professional societies; or
By use of direct mailings to prequalified firms.
Public notification shall include instructions to specify any special information or experience that a firm must submit by the date and time specified in the advertisement.
Failure to respond within the time limits noted in the advertisement shall be cause for rejection of a firm's application.
Official Site of The State of New Jersey
Division of Property Management and Construction