810 CMR, § 4.05

Current through Register 1533, October 25, 2024
Section 4.05 - Capacity Ratings
(1) DCAM shall determine the maximum amount of work an applicant for certification is capable of undertaking on an individual project basis and on an aggregate basis, and shall assign each Contractor a Single Project Limit and Aggregate Work Limit for certification purposes.
(2)Single Project Limit. A Contractor's Single Project Limit shall be based upon the average of the largest two public or private Building Projects in a Category of Work for which the Contractor obtains certification, completed by the Contractor within the past five years. The two projects must each receive satisfactory Project Ratings for them to be considered for capacity purposes. Subject to the Contractor's bonding limits as provided in 810 CMR 4.05(4), a Contractor's Single Project Limit shall equal 130% of the mean average of the contract dollar value of the two projects. The Commissioner may institute a procedure for increasing the foregoing percentage to 180% for any Contractor who has demonstrated a capacity to successfully undertake larger projects based upon a record of superior performance or other factors prescribed by the Commissioner.
(3)Aggregate Work Limit. A Contractor's Aggregate Work Limit shall be based on the dollar value of the largest volume of construction work completed by the Contractor during any 12 consecutive month period within the past five years as demonstrated in CPA-prepared documentation subject to the Contractor's bonding limits. A Contractor's Aggregate Work Limit shall equal 130% of such dollar value, provided that the Commissioner may institute a procedure for increasing the foregoing percentage to 180% for an Contractor who has demonstrated a capacity to successfully undertake a greater volume of work based upon a record of superior performance or other factors prescribed by the Commissioner.
(4)Bonding Limits. A Contractor applying for certification or recertification must establish to the satisfaction of DCAM that it will be able to secure a performance bond and a payment bond by a firm that is duly licensed by the Commonwealth of Massachusetts Division of Insurance and is on the most current list of approved sureties issued by the United States Department of the Treasury. In no event may the Contractor's Single Project Limit or Aggregate Work Limit exceed the Contractor's bonding capacity. If the Contractor's single project or aggregate bonding capacity is less than the Contractor's Single Project Limit or Aggregate Work Limit as determined by DCAM, then the Contractor's Single Project Limit or Aggregate Work Limit will be limited to such bonding capacity.

810 CMR, § 4.05