What Is a Contractor Prequalification Letter?
A contractor prequalification letter (also called contractor prequalification or a construction prequalification letter) is an official document that verifies a contractor’s financial strength, experience, bonding capacity, and ability to perform work. Project owners, municipalities, and general contractors often require this letter before allowing a contractor to bid or participate in large‑scale projects.
A contractor prequalification letter demonstrates:
- Verified financial stability
- Proven project experience
- Bonding capacity and surety support
- Compliance with project requirements
- Reduced risk for project owners
If you’re bidding on public or private construction projects, you may need a contractor prequalification letter before your bid will be accepted.
Contractor Prequalification Requirements and Eligibility
Prequalification requirements vary by project but typically include:
- Completed contractor prequalification application
- Financial statements and work history
- Bonding capacity verification
- Insurance and safety documentation
- References and past performance records
Most contractors qualify quickly with proper documentation.
Contractor Prequalification Letter Cost
The cost of obtaining a contractor prequalification letter depends on:
- Project size
- Required bonding capacity
- Financial review complexity
- Contractor experience and backlog
Most prequalification letters are issued at no cost when paired with bonding support.
Who Needs a Contractor Prequalification Letter
You may need a construction prequalification letter if you are:
- A general contractor bidding on public projects
- A subcontractor seeking approval from a GC
- A construction firm entering new markets
- A contractor pursuing large‑scale or high‑risk projects
- A company required to show bonding capacity before bidding
Any contractor seeking to demonstrate credibility and financial strength may benefit from prequalification.
How the Contractor Prequalification Letter Process Works
1
Complete the Application
Submit the quick, 60‑second contractor prequalification application.
2
Financial
& Experience Review
We evaluate your financials, work history, and bonding capacity.
3
Receive Your Letter
Same‑day issuance available for most contractors.
Why Contractors Choose Us
- Lowest rates from A‑rated sureties
- Fast approvals for all project sizes
- Digital delivery for immediate submission
- Construction bonding and prequalification specialists
- 100% compliance guaranteed
Top Contractor Prequalification Letter Questions Answered
Our most common questions answered efficiently.
Most letters are issued the same day once financials and project details are reviewed.
It typically includes bonding capacity, financial strength, work history, and confirmation of contractor qualifications.
Not always—some owners require it, while others only request bonding capacity verification.
It confirms capacity and qualifications but final approval depends on project‑specific underwriting.
