Prequalification
Greywood CPA prepares the reviewed and audited financial statements contractors need to prequalify for public work. Many state transportation departments, public owners, school districts and large general contractors require prequalification before you can bid, and they often set your maximum bidding capacity from your financial statements. We are a licensed CPA firm (Virginia Board of Accountancy firm license #134961) working nationwide, at a fixed fee.
Each program sets its own rules: the level of CPA involvement, how recent the statements must be, and the forms that go with them. We read your program's requirements first and prepare statements that meet them.
Last reviewed: November 2026
Prequalification is the approval step before you can bid. The owner reviews your experience, safety record, equipment and finances, and usually assigns a work class and a maximum capacity: the total value of work you may have under contract. Financial statements drive the capacity number.
| Owner | What they usually want |
|---|---|
| State transportation departments | Reviewed or audited statements on a schedule set by the department, plus their own forms |
| Public owners and municipalities | Statements per the bid documents, often reviewed or audited |
| School districts and universities | Per the procurement rules for the project size |
| General contractors (subcontractor prequalification) | Per the GC's policy, often reviewed for larger subcontracts |
Check the program manual. It states the report level, how many months after year-end the statements must be dated, and any forms a CPA must sign.
Many programs calculate maximum capacity from a multiple of working capital or net worth, sometimes adjusted for the level of CPA report: audited statements may earn a higher multiple than reviewed ones. Getting the balance sheet right, with collected retainage, current receivables and no unnecessary related-party balances, can raise your capacity.
Prequalification usually expires a set time after your fiscal year-end unless you renew with new statements. Missing the renewal date can lock you out of bids. We build the schedule around your renewal date, not just your tax deadline.
A 30-minute call about your organization, who needs the report and your deadline.
Scope, report type, timeline and one fixed fee, in writing.
Everything we need, uploaded through a secure portal.
Remote testing, then a draft for your review.
A CPA partner signs, and we walk you or your board through the results.
It depends on the program. Some accept reviewed statements, others require an audit, and some give a higher capacity to audited statements. The program manual states the requirement.
Many programs use a multiple of working capital or net worth from your financial statements, sometimes adjusted by the level of CPA report and your experience rating.
Programs typically require statements dated within a set number of months of your fiscal year-end and renewal each year. Check your program's deadline.
Where a program requires a CPA to complete or sign forms tied to our report, we can, as long as they relate to work we performed.
We quote one fixed fee in writing before any work starts, based on your size, number of jobs and the level of report the program requires.
Send us the program requirements and your renewal date. A senior CPA will send a fixed-fee proposal within 1–3 business days.