13th March, 2019.

APRIL 14, 2019

PROFESSIONAL PRACTICE
AND MANAGEMENT II

ASSIGNMENT:
Contractors’ classification
and its relevance in the
construction industry.

GIFTY FOSUAA-POKU
LECTURER: DR. DANIEL DUAH
PG 5020218
INTRODUCTION

A contractor refers to a firm or outfit that takes full responsibility for supplying materials, labour,

equipment and services necessary for a specific construction project. Civil Engineering contractors

may be General Building and Civil or Road Contractors.

The Ministry of Works and Housing provides guidelines for classifying General building

contractors while the Ministry of Roads and Highways does that Civil (Road) contractors.

CRITERIA FOR CONTRACTOR CLASSIFICATION.

The classification is according to:

1. Strength of technical capacity

2. Strength of financial capacity

3. Equipment owned

4. Human resource

CONTRACTOR CLASSIFICATION.

According to what they do, Ghanaian contractors are generally grouped into 8 broad groups:

Classes A, B, C, S, D, K, E and G.

CLASS TECHNICAL KNOWHOW

1. A For Roads, Airports and related structures

2. B For Bridges, culverts and such structures

3. C Labour-based road works

4. S For steel bridges and structures, construction rehabilitation and

maintenance.
 5. D General Building works

6. K General Civil works

7. E Electrical Works

8. G For plumbing works

While the alphabet tells what the contactors do (technical knowhow), the number signifies the

financial class of the contractor. The 4 financial classes are Classes 1, 2, 3, and 4.

Financial Class 4

CLASSES FINANCIAL CAPACITY

1. Class 4 Contractor may not tender for works above USD $75,000

2. Class 3 Contractors are deemed well equipped to handle contracts up to

US $200,000

3. Class 2 Up to US $500, 000

4. Class 1 Contractors here are limitless: they are considered well equipped and

resourced to execute construction works in excess of US $500,000.

REASONS FOR CLASSIFICATION

The aim of the classification of contractors is a way

1. It serves as a means of enabling government have a database of companies and their various

strengths. The database will make it easy to crosscheck the capacities of all companies

bidding for any contract so as to know in good time what they are capable of doing.
2. The classification is to help eliminate cases of contractors making false claims about the

capacity thereby enhancing transparency and effectiveness in budget implementation.

3. To cut down the number of contractors who bid for a project to the required category in

order to save time and other resources.