What criteria are commonly used for contractor prequalification?

The selection of "experience, financial stability, safety record, and references" as the correct criteria for contractor prequalification is based on the fundamental aspects that ensure a contractor can successfully complete a project.

Experience is crucial because it indicates the contractor’s familiarity with similar projects, which enhances the likelihood of meeting deadlines and quality standards. Financial stability is essential as it assesses whether the contractor has the economic resources to undertake and sustain a project without facing monetary issues that could lead to delays or failures.

A strong safety record demonstrates a commitment to creating a safe working environment, which is vital in reducing accidents and liabilities on a job site. Lastly, references provide insights into the contractor’s past performance and reputation in the industry, allowing potential clients to gauge reliability and quality through the experiences of others.

In contrast, the other options present criteria that, while potentially relevant, do not encompass the core factors deemed essential for ensuring a contractor can fulfill project requirements effectively. While bid price and materials are important, they are more focused on the execution of individual projects rather than the overall capabilities of a contractor as assessed during prequalification.