Prequalification · Free Template · COI Compliance

Most subcontractor prequalification forms ask the wrong questions in the wrong order — and then live as PDFs in someone’s email inbox, completely disconnected from the COI tracking and compliance tools your team actually uses. This guide fixes both problems.

1.5–3× Cost multiplier when a subcontractor defaults mid-project
$875+ Annual fee ISNetworld charges subcontractors to participate
$0 What Billy charges subs for prequalification and compliance

In This Article

1. What is a subcontractor prequalification form?
2. The 6 sections every prequal form needs
3. Connecting your form to your compliance workflow
4. Digital vs. paper — why format matters
5. Free template to download and use now
6. Common prequal mistakes to avoid

Prequalifying subcontractors is one of the highest-leverage risk management activities a general contractor can perform. Vetting a sub before they’re on payroll is exponentially cheaper than replacing one who defaults mid-project, fails a safety audit, or doesn’t carry adequate insurance when something goes wrong on-site.

Yet most GCs still run their prequalification process with emailed PDFs, manual review spreadsheets, and gut instinct. If that describes your current setup, this guide will show you what a modern digital prequalification process looks like — and give you a template you can deploy immediately.

Already have a prequal process? Skip to connecting your form to your COI compliance workflow — that’s where most GCs leave the most risk on the table.

The Basics

What Is a Subcontractor Prequalification Form?

A subcontractor prequalification form is a structured questionnaire that general contractors use to evaluate potential trade partners before inviting them to bid or awarding contracts. It collects the baseline information your team needs to make an informed risk decision — financial stability, safety record, insurance coverage, licensing, and relevant project experience.

Prequalification is distinct from bid evaluation. When you’re comparing bids, you’re asking “who gave us the best price for this scope?” When you’re prequalifying, you’re asking “is this company capable of performing this work safely and financially?” The two questions need separate answers, and prequalification should happen before the bid process — not during it.

If you’re using ISNetworld or Avetta, you already have a prequal process — but you may be paying for complexity you don’t need, and your subcontractors are paying to participate.

The 6 Sections Every Prequal Form Needs

1. Company Info

   • Legal name, EIN, entity type, years in business, trade, and licensed states.

2. Insurance

   • Coverage limits, carriers, expiration dates, and endorsement capability confirmation.

3. Safety Record

   • EMR for 3 years, OSHA recordables, safety program, and dedicated safety officer.

4. Financial Stability

   • Financial statements or CPA letter, line of credit, bonding capacity, and litigation history.

5. Licensing

   • Contractor license numbers, states, specialty certs, and MBE/WBE/DBE status.

6. Project Experience

   • Completed projects, references, largest single contract, and current backlog.

Section 1: Company Information

Basic but essential. This section establishes the legal identity of the company you’re evaluating and prevents the common problem of working with a trade name that doesn’t match the insured entity on the COI.

• Legal business name (as registered, not DBA)
• DBA / trade name (if different)
• Business address and primary contact
• Entity type (LLC, Inc., sole proprietor, partnership)
• Federal EIN / Tax ID number
• Years in business and year founded
• Number of full-time employees
• States / metro areas where licensed to work
• Primary trade or scope of work

Why legal name matters: If the legal name on the prequal form doesn’t match the named insured on the COI, you could accept a certificate that covers a different entity. This is one of the most common compliance errors in construction.

Section 2: Insurance Information

This is where most prequal forms stop too soon. Asking "do you have insurance?" is not enough. Collect specifics and require an attached certificate of insurance at submission:

• Current GL, WC, Auto, and Umbrella carrier names and policy numbers
• Coverage limits per occurrence and aggregate for each line
• Whether the sub can provide Additional Insured endorsements
• Whether the sub can provide Primary and Non-Contributory language
• Confirmation of Waiver of Subrogation availability
• Attach a current COI at submission

Section 3: Safety Record

Safety performance is one of the most predictive indicators of project success. Collect:

• Experience Modification Rate (EMR) for the past 3 years
• Number of OSHA recordable incidents per year (last 3 years)
• Any OSHA citations in the past 5 years (with explanation)
• Total hours worked per year (for incident rate calculation)
• Written safety program (attach if yes)
• Dedicated safety officer on staff?

Section 4: Financial Stability

• Most recent fiscal year financial statements (third-party prepared preferred)
• Current line of credit (bank statement confirming availability)
• Bonding capacity — single project and aggregate (letter from surety or agent)
• Any bankruptcies or reorganizations in the past 10 years?
• Any outstanding judgments, liens, or pending litigation?

Section 5: Licensing and Certifications

• Contractor license number and state of issuance
• Specialty certifications relevant to scope
• MBE / WBE / DBE certification status
• Union or non-union status

Section 6: Project Experience and References

• 3–5 completed projects in the past 3 years (name, location, contract value, scope, GC reference)
• Largest single project completed (contract value)
• Current backlog and available capacity
• 3 GC references with direct contact information
• Any projects where sub failed to complete or was terminated for cause?

Connecting Your Form to Your Compliance Workflow

This is where most paper prequal processes collapse. A filled-out PDF tells you the sub had adequate insurance when they submitted the form. It tells you nothing about whether they still have it six months later when they’re active on your project.

Effective prequalification isn’t a one-time event — it’s the beginning of an ongoing compliance relationship:

1. Prequal form approved — Sub meets your baseline criteria. COI reviewed and compliant. Vendor added to your approved list.
2. COI tracking begins — Billy monitors expiration dates and automatically contacts the sub or their broker before policies lapse.
3. Procore sync activates — Approved vendor status flows into Procore, Autodesk, or your ERP so project teams can see current compliance without leaving their workflow.
4. Annual renewal triggered automatically — Billy sends prequal renewal requests on your schedule. Subs re-confirm information and re-submit COIs.
5. AP holds fire only when necessary — Proactive outreach means this should be rare, not routine.

The ISNetworld / Avetta problem: Platforms like ISNetworld charge subcontractors $875+ per year just to participate in your prequal process. That cost gets passed back to you in higher bid prices — and filters out smaller, qualified subs who won’t pay. Billy charges subcontractors nothing.

Digital vs. Paper: Why the Format Matters

Free Subcontractor Prequalification Form Template

How to use this template: Copy the section structure below into your existing form tool, or use Billy’s prequalification tool to deploy it digitally with automated COI collection, AI review, and annual renewal built in.

Template Structure

Section 1 — Company Information
Legal business name · DBA · Federal EIN · Entity type · Business address · Primary contact name, phone, email · Years in business · Primary trade/scope · States licensed to work · Number of full-time employees

Section 2 — Insurance
GL carrier + policy # + limits + expiration · Workers Comp carrier + X-mod + expiration · Commercial Auto limits + expiration · Umbrella/Excess limits + expiration · AI endorsement capability (Y/N) · PNC endorsement capability (Y/N) · Waiver of Subrogation (Y/N) · [Attach current COI]

Section 3 — Safety
EMR last 3 years · OSHA recordable incidents last 3 years · Total hours worked last 3 years · Any OSHA citations (explain) · Written safety program (attach) · Dedicated safety officer (Y/N)

Section 4 — Financial
Most recent financial statements or CPA letter · Line of credit confirmation · Bonding capacity letter (single + aggregate) · Any bankruptcies/reorganizations last 10 years · Any outstanding judgments or litigation

Section 5 — Licensing
Contractor license # + state + expiration · Specialty certifications · MBE/WBE/DBE status + certification # · Union/non-union

Section 6 — Experience & References
3–5 completed projects (name, location, value, scope, GC reference) · Largest single project · Current backlog · 3 GC references (name, phone, email) · Any projects where company failed to complete (explain)

Certification Statement
“I certify that the information provided above is accurate and complete to the best of my knowledge. I authorize [Company Name] to contact the references listed and to verify the information provided.”

Signature · Title · Date

Common Prequal Mistakes to Avoid

Asking for too much from small subs

A drywall contractor on a $45,000 subcontract doesn’t need the same documentation as a curtainwall contractor on a $4M scope. Build tiered criteria — a lightweight form for low-value/low-risk scopes and a full form for high-value, high-risk, or specialty trades.

Treating prequal as a one-time event

A sub who was financially stable and fully insured in January may not be in October. Annual renewal is the minimum cadence. For high-volume or high-risk subs, semi-annual is better.

Separating prequal from COI compliance

If your prequal form and your COI tracking system are different tools, you have a gap.

Not confirming what the COI actually says

Accepting a COI without reviewing endorsement accuracy is like approving a financial statement without reading the notes.

Frequently Asked Questions

How often should we re-prequal subcontractors?

Annually is standard for most GCs, with COI tracking running continuously throughout the year.

Should we prequalify before or after soliciting bids?

Ideally, before. A pre-approved vendor list lets you send bid invitations only to subs who’ve already met your baseline criteria.

What if a subcontractor refuses to complete the form?

That itself is a signal worth noting. Qualified, well-run subcontractors generally welcome the opportunity to demonstrate their financial stability and safety record.