Compilation of Rules and Regulations of the State of Georgia
Department 672 - STATE DEPARTMENT OF TRANSPORTATION
Chapter 672-5 - GOVERNING THE PREQUALIFICATION OF PROSPECTIVE BIDDERS
Rule 672-5-.02 - Definitions

(a) "Audited Financial Statement": A Financial Statement as herein defined prepared by an independent Certified Public Accountant. The Audited Financial Statement must contain an Accountant's Certificate by the independent Certified Public Accountant who prepared the statement. If signed by the firm of the Certified Public Accountant, the firm must be registered with the State Board of Accountancy, State of Georgia, or in the State where the company headquarters is located.

(b) "Board of Review": A board consisting of not less than three (3) members, all of whom shall be employees of the Department. All members shall be appointed by order of the Commissioner.

(c) "Certified Public Accountant": A person duly registered with the State Board of Accountancy, State of Georgia, or equivalent registration with another state in the United States.

(d) "Contractor": A Person prequalified pursuant to these rules to bid on a Department contract in excess of Two Million Dollars ($2,000,000).

(e) "Commissioner": The Commissioner of the Georgia Department of Transportation.

(f) "Compiled Financial Statement": A Financial Statement as herein defined prepared by an independent Registered Public Accountant or an independent Certified Public Accountant. The Complied Financial Statement must contain an Accountant's Certificate executed by the independent Certified Public Accountant or Registered Public Accountant who prepared the statement. If signed by the firm of the Certified Public Accountant, the firm must be registered with the State Board of Accountancy, State of Georgia, or in the State where the company headquarters is located.

(g) "Current Capacity": The difference between a Contractor's or Subcontractor's Maximum Capacity Rating and the dollar value of its current uncompleted work, regardless of its location and with whom it has contracted.

(h) "Department": The Georgia Department of Transportation.

(i) "Engineer": The Chief Engineer, acting directly or through a duly authorized representative, such representative acting within the scope of the particular duties assigned to him or her and within the authority given him or her.

(j) "Financial Statement": Completed on Department approved forms, shows all assets and liabilities which support the assets and liabilities reported on the application and covering a period ending not more than twelve (12) months prior to the date of the application. The Financial Statement cannot be prepared by a Certified Public Accountant or Registered Public Accountant who is directly or indirectly interested in the business of the Prospective Contractor submitting the Financial Statement. There are three (3) types of Financial Statements:

(k) "Maximum Capacity Rating": The total aggregate amount (dollar value) of work a Prospective Bidder may have under contract at any time, either as principal Contractor or Subcontractor, regardless of its location and with whom it may be contracted, as determined by the Department.

(l) "Parent" or "Parent Company": A company or legal entity that wholly owns another company (subsidiary) or controls the other entity by owning more than 50 percent of the company's voting stock. This ownership or control may extend to one or more subsidiaries in either the same industry or complimentary industries.

(m) "Person": Any individual, co-partnership, association, corporation, firm or joint stock company, or joint venture or its lessees, trustees, assignees or receivers as appointed by any court, who is registered with the Georgia Secretary of State where required to do so in order to conduct business in the state.

(n) "Prequalification Committee": The Prequalification Committee of the Department of Transportation which shall consist of not less than three (3) members, all of whom shall be employees of the Department. Provided, that the Director of Construction and are presentative of the Office of Audits shall be members. Provided further that all other members shall be appointed by order of the Commissioner. The Prequalification Committee shall elect one of its members as chairman and another as secretary. The secretary shall keep a complete record of the proceedings and decisions of the Prequalification Committee.

(o) "Prospective Bidder": Prospective Contractor(s) and/or Prospective Subcontractor(s).

(p) "Prospective Contractor": Any Person who wishes to apply or renew its eligibility to be prequalified as a Contractor.

(q) "Prospective Subcontractor": Any Person who wishes to apply or renew its eligibility to be registered as a Subcontractor.

(r) "Reviewed Financial Statement": A Financial Statement as herein defined prepared by an independent Registered Public Accountant or an independent Certified Public Accountant. The Reviewed Financial Statement must contain an Accountant's Certificate executed by the independent Certified Public Accountant or Registered Public Accountant who prepared the statement. If signed by the firm of the Certified Public Accountant, the firm must be registered with the State Board of Accountancy, State of Georgia, or in the State where the company headquarters is located.

(s) "Subcontractor": A Person registered pursuant to these rules to sublet work from a Contractor or to perform any contract less than or equal to Two Million Dollars ($2,000,000) as a prime contractor.

(t) "Subsidiary" or "Subsidiary Company": A legal entity controlled by another (parent) company, which is also considered a legal entity. The subsidiary is wholly owned by the parent company, or the parent company owns or controls more than 50 percent of the subsidiary's voting stock.