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Contractor Grading

How the Contractor Categorization and Grading process is determined:

  1. Construction Firms

  2. Specialist Works Contractors

  3. Manufacturers and Suppliers

Construction Firms

The contractor categorization and grading process is determined by the following factors: Best Annual Turnover, Largest Contract and Available Capital.

  • Best Annual Turnover as determined by the best turnover over a period of (3) three years.
  • Largest Contract is determined by the largest contract undertaken and completed for Projects done in your class of construction works (completed during the (3) three years immediately preceding the application).
  • Available Capital is the sum of total equity and retained income or any form of surety from recognised financial institutions over a period of (3) three years.
  • Your grading will be used by project owners to qualify your tender to be considered for a particular construction works contract. For example, if you are registered as a grade B2, you will be considered for general building works of a value to a maximum of E25 million.

Determining Grading Criterion

Weighted averages are given to the grading factors of Best Annual Turnover – 10, Largest Contract – 70 and Available Capital – 20

The formula for the categorization and grading criterion will be calculated as the ‘point allocated to the relevant graded factor multiplied by the weighted average’. The totals acquired by multiplying the point allocated to the relevant graded factor with the weighted average of each graded factor will then be added together to acquire the determining score rating.

Illustration A – Classification of categories to score rating (Building Works Contractors)

Determining Score Rating Grade Maximum Tender Value Range (E)
501 - 600 B1 No Limit
401 - 500 B2 25 000 000
301 - 400 B3 10 000 000
201 - 300 B4 5 000 000
101- 200 B5 2 000 000
   0 - 100 B6 500 000
NB – Points range from 1 – 6 and zero (0) is allocated where there is no figure in a relevant grading factor.

Example of Company to be graded

COMPANY NAME BEST ANNUAL TURNOVER LARGEST CONTRACT AVAILABLE CAPITAL
ABC Construction 9,945,050.00 7,260,431.00 1,280,186.00

Grading Calculation

Company best annual turnover at 10 largest contract at 70 available capital at 20 grading score Category
ABC Construction 4 x 10 = 40 5 x 70 = 350 4 x 20 = 80 40 + 350 + 80 = 470 B2

Illustration B – Classification of categories to score rating (Civil Works Contractors)

Determining Score Rating Grade Maximum Tender Value Range (E)
501 - 600 C1 No Limit
401 - 500 C2 50 000 000
301 - 400 C3 30 000 000
201 - 300 C4 15 000 000
101- 200 C5 5 000 000
   0 - 100 C6 1 000 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
100 000 000 6 40 000 000 6 20 000 000 6
25 000 000 5 10 000 000 5 5 000 000 5
15 000 000 4 6 000 000 4 1 500 000 4
7 500 000 3 3 000 000 3 750 000 3
2 500 000 2 1 000 000 2 250 000 2
1 1 1 1 1 1
0 0 0 0 0 0
NB – Points range from 1 – 6 and zero (0) is allocated where there is no figure in a relevant grading factor.

Illustration C – Classification of categories to score rating (Electrical Works Contractors)

Determining Score Rating Grade Maximum Tender Value Range (E)
301 - 400 E1 No Limit
201 - 300 E2 2 000 000
101- 200 E3 1 000 000
   0 - 100 E4 500 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
2 000 000 4 800 000 4 400 000 4
1 000 000 3 400 000 3 200 000 3
500 000 2 200 000 2 50 000 2
1 1 1 1 1 1
NB – Points range from 1 – 4 and zero (0) is allocated where there is no figure in a relevant grading factor.

Illustration D – Classification of categories to score rating (Mechanical Works Contractors)

Determining Score Rating Grade Maximum Tender Value Range (E)
301 - 400 M1 No Limit
201 - 300 M2 2 000 000
101- 200 M3 1 000 000
   0 - 100 M4 500 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
2 000 000 4 800 000 4 400 000 4
1 000 000 3 400 000 3 200 000 3
500 000 2 200 000 2 50 000 2
1 1 1 1 1 1
NB – Points range from 1 – 4 and zero (0) is allocated where there is no figure in a relevant grading factor.

Specialist Works Contractors

The contractor categorization and grading process is determined by the following factors: Best Annual Turnover, Largest Contract and Available Capital.

  • Best Annual Turnover as determined by the best turnover over a period of (3) three years.
  • Largest Contract is determined by the largest contract undertaken and completed for Projects done in your class of construction works (completed during the (3) three years immediately preceding the application).
  • Available Capital is the sum of total equity and retained income or any form of surety from recognised financial institutions over a period of (3) three years.
  • Your grading will be used by project owners to qualify your tender to be considered for a particular construction works contract. For example, if you are registered as a grade BS2, you will be considered for works of a value to a maximum of E12.5 million.

Determining Grading Criterion

There shall be an annual grading of all construction firms as follows:

Weighted averages are given to the grading factors of Best Annual Turnover – 10, Largest Contract – 70 and Available Capital – 20

The formula for the categorization and grading criterion will be calculated as the ‘point allocated to the relevant graded factor multiplied by the weighted average’. The totals acquired by multiplying the point allocated to the relevant graded factor with the weighted average of each graded factor will then be added together to acquire the determining score rating.

Illustration A – Classification of categories to score rating (Building Works Specialist (BS))

Determining Score Rating Grade Maximum Tender Value Range (E)
501 - 600 BS1 60 000 000
401 - 500 BS2 12 500 000
301 - 400 BS3 5 000 000
201 - 300 BS4 2 500 000
101- 200 BS5 1 000 000
   0 - 100 BS6 250 000

Example to illustrate grading calculation (Building Works Specialist (BS))

Best Annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
30 000 000 6  12 000 000 6 6 000 000 6
6 250 000 5 2 500 000 5 1 250 000 5
2 500 000 4 1 000 000 4 250 000 4
1 250 000 3 500 000 3 125 000 3
500 000 2 200 000 2 50 000 2
1 1 1 1 1 1
0 0 0 0 0 0

NB – Points range from 1 – 6 and zero (0) is allocated where there is no figure in a relevant grading factor.

Example of Company to be graded

COMPANY NAME BEST ANNUAL TURNOVER LARGEST CONTRACT AVAILABLE CAPITAL
ABC Construction 2 500 000  2 500 000 250 000

Grading Calculation

Illustration B – Classification of categories to score rating (Civil Works Specialist (CS))

Determining Score Rating Grade Maximum Tender Value Range (E)
501 - 600 CS1 100 000 000
401 - 500 CS2 25 000 000
301 - 400 CS3 15 000 000
201 - 300 CS4 7 500 000
101- 200 CS5 2 500 000
   0 - 100 CS6 500 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
50 000 000 6 20 000 000 6 10 000 000 6
12 500 00 5 5 000 000 5 2 500 000 5
7 500 00 4 3 000 000 4 750 000 4
3 750 000 3 1 500 000 3 375 000 3
1 250 000 2 500 000 2 125 000 2
1 1 1 1 1 1
0 0 0 0 0 0

NB – Points range from 1 – 6 and zero (0) is allocated where there is no figure in a relevant grading factor.

Illustration C – Classification of categories to score rating (Electrical Works Specialist (ES))

Determining Score Rating Grade Maximum Tender Value Range (E)
301 - 400 ES1 20 000 000
201 - 300 ES2 10 000 000
101- 200 ES3 2 500 000
   0 - 100 ES4 1 000 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
10 000 000 4 4 000 000 4 2 000 000 4
5 000 000 3 2 000 000 3 1 000 000 3
1 250 000 2 500 000 2 250 000 2
1 1 1 1 1 1

NB – Points range from 1 – 4 and zero (0) is allocated where there is no figure in a relevant grading factor.

Illustration D – Classification of categories to score rating (Mechanical Works Specialist (MS))

Determining Score Rating Grade Maximum Tender Value Range (E)
301 - 400 MS1 20 000 000
201 - 300 MS2 10 000 000
101- 200 MS3 2 500 000
   0 - 100 MS4 1 000 000

Example to illustrate grading calculation

Best annual Turnover (E) Weight of 10 Points Allocation Largest Contract (E) Weight of 70 Points Allocation Available Capital (E) Weight of 20 Points Allocation
10 000 000 4 4 000 000 4 2 000 000 4
5 000 000 3 2 000 000 3 1 000 000 3
1 250 000 2 500 000 2 250 000 2
1 1 1 1 1 1

NB – Points range from 1 – 4 and zero (0) is allocated where there is no figure in a relevant grading factor.

Manufacturers and Suppliers

Manufacturers and Suppliers are graded based on their annual turover.

Category Estimated Minimum Annual Turnover (E) Estimated Maximum Annual Turnover (E)
1 10 000 001 Unlimited
2 7 500 001 10 000 000
3 5 000 001 7 500 000
4 2 500 001 5 000 000
5 1 000 001 2 500 000
6 500 001 1 000 000
7 1 500 000
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