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 