How To Do Business with DPM&C

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 (DPM&C). A contractor must be classified by DPM&C to be eligible to perform DPM&C-administered construction work, as well as construction projects for school boards and various New Jersey public agencies.

The firm must submit to DPM&C 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 DPM&C 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, complete with a balance sheet, related statements of income and retained earnings and cash flows. The CPA review of 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 then one year old.

• 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, from a surety authorized to issue bid, performance and payment bonds in New Jersey, including aggregate bonding limits;

• If the contractor is a corporation or partnership, a statement listing all stockholders or partners owning 10% or greater interest in the company; and

• A statement of any other pertinent material and facts to justify the classification requested by the contractor.

Following receipt of the classification request, DPM&C will evaluate the contractor’s qualifications and determine if and how the contractor should be classified. DPM&C 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, DPM&C will notify the firm of the results by mail.

DPM&C 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. An unfavorable performance rating may result in suspension or debarment of the contractor.

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 at http://www.state.nj.us/treasury/dpmc/Assets/Files/Request_Class_form.pdf. To recieve an application by mail please forward a written request to DPM&C Contractor Classification Unit, PO Box 042, Trenton, N.J. 08625-0042, or call (609) 943-3400 (select # 3).

When a DPM&C 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 DPM&C to firms classified in the appropriate trade(s)

Before a firm can compete for consulting work on State construction projects, the firm’s qualifications must be verified by the DPM&C.

The firm must complete and submit DPM&C’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 DPM&C 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.

DPM&C 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. DPM&C will assign a level justified by applicable overall experience, length of time in business, prior DPM&C experience, staffing and management depth. Firms may increase their technical qualification for a specific project by entering into a joint-venture with 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 DPM&C to update and keep current all prequalification form, and to bring to DPM&C’s attention any major changes in the firm’s status.

To obtain prequalification application forms, please click here http://www.state.nj.us/treasury/dpmc/forms.html or call 609-984-6979.

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.

Failure to respond within the time limits noted in the advertisement shall be cause for rejection of a firm’s application.