720 CMR 5.03 - Aggregate Bonding Capacity and Single Contract Limits for Contractors

(1) Aggregate and Single Bonding Capacity. The Prequalification Committee shall verify the Contractor's Aggregate and Single Bonding Capacity, as is evidenced by a letter from the Surety's authorized representative in accordance with 720 CMR 5.02(8). Unlimited Aggregate Bonding Capacities shall not be allowed.
(2) Classes of Work. The Prequalification Committee shall prequalify Contractors in one or more of the classes of work as indicated on the Prequalification Application and Prequalification Certificate. The Prequalification Committee may also establish additional classes of work for specialized contracts. Contractors shall be notified of such special classes of work in the Notice to Contractors or Advertisement for Bids for the particular project and may apply for Prequalification in such special classes of work in accordance with 720 CMR 5.03(4)(d).
(3) Single Contract Limit. The Prequalification Committee may establish a Single Contract Limit for the Contractor in any classes of work for which the Contractor has been Prequalified. A Single Contract Limit may be established, if, in the opinion of the Prequalification Committee, the Contractor does not have adequate experience, responsibility, competency, or equipment necessary to undertake an individual contract valued at the Contractor's Single Bonding Capacity within that class of work. In establishing Single Contract Limits, the Prequalification Committee shall consider, but shall not be limited to considering, the Contractor's competency and responsibility, the amount and condition of its equipment, the experience of its principal or key personnel, its history of payment to subcontractors and material suppliers, and previous work experience.
(4) Duration of Prequalification Status.
(a) Prequalification certification shall remain in effect for a duration of time stipulate d in the Prequalification Certificate with a maximum of 24 months as indicated in the Prequalification Certificate.
(b) Notwithstanding the previous 720 CMR 5.03(4)(a), if a material change has occurred in the Contractor's bonding capacity surety, financial condition or if the Contractor has undergone any change in the name or structure of the firm, its officers, or ownership, written notice shall be given to the Prequalification Committee by the Contractor, whereupon a new Application for Prequalification or letter verifying Contractor's Aggregate and Single Bonding Capacity shall be required and Contractor's Prequalification status and Single Contract Limit(s) may be revised. Should the issuance of a performance bond alter the current aggregate or single bond capacity of a Contractor, a letter from the surety stating this fact must be submitted to the Prequalification Committee.
(c) The Prequalification Committee may at any time request, in writing, that the Contractor furnish additional information relative to its Prequalification status and Single Contract Limit(s). Such request shall set forth the reason such information is required. If the requested information is not filed within 30 days from date of notice, the Contractor's Prequalification Certificate may be revoked, and, if revoked, bids from the Contractor shall not be accepted.
(d) Requests by Contractors for the revision of Aggregate and Single Bonding Capacity, Single Contract Limits or for additional classes of work may be considered by the Prequalification Committee at any time. Unless otherwise approved by the Prequalification Committee, such requests must be submitted at least 14 calendar days prior to a bid opening in order to receive consideration for that bid opening.
(e) A Prequalification Certificate may be modified upon receipt of a Record of Contractor's Performance. This modification will be based on the Department's evaluation of the quality of the Contractor's performance, whether as a general contractor or subcontractor, in accordance with the Record of Contractor's Performance. (Form CSD-680).


720 CMR 5.03

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