Contractor Grading
How the Contractor Categorization and Grading process is determined:
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 |
