What You Need To Know About MDOT Prequalification
And Working For The Michigan Department Of Transportation
If your company is looking to start working with MDOT or simply renew your prequalification for the Michigan Department of Transportation, it’s important that you know the process of getting your company approved and qualified so that you can get on the job as quickly as possible. It’s not always a simple to get approved to work on State jobs, but after the process is done, it can be a great opportunity for your business to not only contribute to our state, but also to network and get your business recognized on a larger scale.
To start the process, your business can start the application process on the Michigan Department of Transportation website – you’ll be able to find the full list of steps and application forms here. First, you’ll need to obtain your prequalification application packet. MDOT provides an option to do this online or via mail if you prefer. After you have completed all the necessary forms and follow the checklist that is included within the packet, as well as follow the guidelines of notary, you will next have to include either articles of incorporation, articles of organization OR a certificate of authority to do business in Michigan. If you are already working with the Michigan Department of Transportation and are simply renewing your prequalification application, you will NOT need to provide these documents a second time, which makes the process a little simpler and easier for you. The last thing that you’ll need to finish off your application is a 1313B-Straight Line Depreciation or an Equipment Appraisal.
Equipment Appraisal vs Straight Line Depreciation
The advantage to conducting an equipment appraisal rather than just learning what your equipment straight line depreciation of your assets is that when a piece of equipment has fully depreciated to zero, your piece of equipment still hold value that is not reflected by that straight line of depreciation. An appraisal will more accurately reflect the actual value of your assets and equipment. The accuracy of an appraisal is based in the fact that having an experienced appraisal look at your equipment and assets will allow the value to reach variables and capture areas where a depreciation schedule will not. A straight line depreciation and equipment appraisal both tell the value of an asset or in this case, your piece of equipment – but it’s important to know that although they both tell the value of the asset, each item is very different and has a different concept behind it, as well as can affect your business differently in determining the value of business overall.
Straight Line Depreciation is defined by Investopedia as “the simplest way to work out the loss of value of an asset over time. Straight line basis is calculated by dividing the difference between an asset’s cost and its expected salvage value by the number of years it is expected to be used.” The idea behind a straight line depreciation although it is simple, it is not always accurate in deciding the actual value of your equipment. A piece of equipment or an asset is accurately valued by multiple variables including the hours/miles used, the state of the equipment, the maintenance records, as well as the market around it.
In conclusion, while you are in the midst of your prequalification application or in the process of renewing your prequalification application, it’s wise to consider the option of investing in an equipment appraisal to make sure that your company and assets are seen for their true value based on more than just the cost of your equipment, and the expected salvage. Miedema Appraisals is proud to be one of a small group of MDOT approved appraisal firms, we have over 30 years of experience in the appraisal industry and are confident that our appraisal services will help you accurately determine the value of your business based on your assets.
If you have more questions about getting your equipment appraised and how to get a MDOT prequalified equipment appraisal, please Click Here or call our customer service team at 616-878-3470 Monday through Friday 8AM – 5PM.
We are glad to answer any questions you might have about the appraisal process and direct your questions as needed.