Prequalification is how a public owner screens contractors before letting them bid. On larger projects the owner runs a separate request for qualification first, and only those who pass get invited to tender. Even on open tenders, the same documents are usually demanded inside the bid package. A small contractor who wants public work should assemble this kit once and keep it current: a workers' compensation clearance certificate, insurance certificates, proof of bonding capacity, a safety certification, references and proof the business is in good standing with the CRA.
Workers' compensation clearance certificate
Every province has a Workers' Compensation Board (the Workplace Safety and Insurance Board, or WSIB, in Ontario). A clearance certificate, sometimes called a letter of good standing, confirms you hold an active account, have paid your premiums and are in compliance. You request it through your provincial board's portal, and most boards offer an instant online lookup.
Two things to get right. First, if you hire subcontractors you must verify their clearance too. An unregistered or non-compliant sub can leave you on the hook for their assessment. Second, clearances are province-specific. If you work across provincial lines you need a clearance from each board where you operate.
Insurance certificates
Public tenders set minimum coverage, and the typical baseline is:
- Commercial general liability (CGL): $2 million per occurrence is common, with $5 million or more on larger or higher-risk projects.
- Automobile liability: required wherever vehicles are used on the work.
- Employer coverage: handled through your workers' compensation clearance.
The documents specify the exact limits and almost always require the owner to be named as an additional insured on the CGL policy. Have current certificates ready before close. These are usually a mandatory submission with zero tolerance for a gap, so a lapsed policy on bid day can sink an otherwise winning bid.
Safety certification (COR)
The Certificate of Recognition, known as COR, is issued by a provincial construction safety association, for example the Alberta Construction Safety Association, the BC Construction Safety Alliance or the Infrastructure Health and Safety Association in Ontario. It certifies that you run a documented health and safety management system that an external auditor has checked.
COR is a mandatory requirement on a large share of Alberta public and institutional work, and elsewhere it is heavily weighted in scored evaluations even where it is not strictly required. For federal work it demonstrates safety capacity, which buyers value more every year. Earning COR is a multi-month exercise, so if you do not hold it, start with your provincial construction safety association well before you need it.
References and past performance
Most prequalification forms ask for three to five references from recent projects of similar scope and value, with a contact for the owner or consultant. Build this list before you need it. Aim for references that match the work you are bidding, municipal infrastructure or institutional construction for example, and that can speak to delivering on time and on budget.
Bonding capacity
Prequalification packages routinely ask for your single-project and aggregate bonding limits, backed by a letter from your surety broker confirming the capacity is available. If you do not yet have a bonding facility, that is a project in itself (see Bonding and Surety).
Tax compliance and registration
You must be in good standing with the CRA and hold a valid Business Number, with your GST/HST registration current for your revenue level. Quebec construction tenders carry an extra requirement: contractors generally need a licence from the Regie du batiment du Quebec, so confirm the current rule at the Regie before bidding Quebec work.
Federal integrity certifications
For federal contracts you must certify compliance with the Government of Canada's Ineligibility and Suspension Policy. You confirm that neither you nor your affiliates have been convicted of listed offences, including fraud, bid-rigging, bribery, tax evasion, labour and environmental offences. A conviction can mean debarment from federal procurement for years, and the public list of ineligible and suspended suppliers is posted on the federal procurement site. Read the certification before you sign it.
Common mistakes
- Letting a certificate lapse before close. A clearance or insurance gap on bid day is an automatic rejection on most public tenders.
- Not checking your subs' clearance. A non-compliant sub can make you liable for their workers' compensation costs.
- Assuming one clearance covers every province. Workers' compensation clearance is province by province.
- Leaving COR to the last minute. It takes months to earn and is mandatory on a lot of Alberta work.
- Thin references. Three to five strong, matched references beat a long list of unrelated jobs.
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