What criteria are used to prequalify subcontractors?

• A. Color of logo, office location, social media presence.
• B. Licenses, insurance, safety record, past performance, references.
• C. Years in business only.
• D. Number of employees only.

Answer: (B)

Prequalifying subcontractors is about confirming they can perform the work reliably, safely, and legally. The right criteria focus on credentialed capability and proven performance: licenses show they’re legally authorized to do the trade and meet industry standards; insurance protects the project from financial risk due to accidents or property damage and ensures coverage for workers’ compensation; a solid safety record indicates they follow proper safety practices and regulatory requirements; past performance and references reveal how they’ve delivered on similar projects in terms of quality, timeliness, and reliability. Together, these factors give a realistic picture of risk and capability before work begins. In contrast, superficial signals like logo color, office location, or social media presence don’t reflect actual performance or safety, and relying on years in business or number of employees alone doesn’t guarantee current competence or proven results.