Prequalification
Prequalification is the process a general contractor, owner, or public agency uses to screen subcontractors before they're allowed to bid a job. A typical prequalification package asks for insurance certificates, a safety record including your EMR (experience modification rate), bonding capacity, references, and financials. Because your mod is a single number that's fast to check against a fixed cutoff, it's often the first thing screened, sometimes automatically, before the rest of a package is read closely. Prequalification isn't a one-time filing for most contractors; GCs commonly ask for a refreshed package annually or before each new job over a certain size, which means an uncorrected mod problem doesn't cost you one bid, it costs you every package you submit until the underlying number changes. The safety, bonding, and reference sections of a package matter too, but a reviewer who never gets past the mod check never reads that far. Keeping your worksheet accurate year round, rather than scrambling before a single bid, is what actually protects you across every package you file.
Common questions
Does prequalification happen just once?
Usually not. Most GCs ask for a refreshed package annually or before each new job over a certain size.
See also
Is your mod right?
Most contractors have never had the worksheet compared to the loss runs and payroll behind it. See what your mod is costing you, or get on the list for a full verification.