Contractor Grading

How the Contractor Categorization and Grading process is determined:

Construction Firms
Specialist Works Contractors
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.

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

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

Grading System

Contractor Grading

How the Contractor Categorization and Grading process is determined:

Construction Firms

Determining Grading Criterion

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

Example of Company to be graded

Grading Calculation

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

Example to illustrate grading calculation

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

Example to illustrate grading calculation

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

Example to illustrate grading calculation

Specialist Works Contractors

Determining Grading Criterion

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

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

Example of Company to be graded

Grading Calculation

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

Example to illustrate grading calculation

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

Example to illustrate grading calculation

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

Example to illustrate grading calculation

Manufacturers and Suppliers

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