What Are Tiers in Contracting?


All industries have a numerical or verbal ranking system whether it’s official or not. While Tier 1 and such all sound nice on a contractor, not everyone knows what they truly entail or the requirements are to reach a particular tier. Due to our growing client-base, we have risen to Tier 2 to show we can undertake more commercial and industrial works rather than just domestic.

Tier 1

Tier one contractors are generally seen as the most time-served and financially secure companies trading. They tend to take on more commercial and larger industrial projects – typically of a large price. Due to such strong stability and a large register of tradesmen, they can undergo works of any size such as office towers and shopping centres. From personal knowledge, lower tiers are generally used for maintenance on these structures; even tier three contractors may be given maintenance work on a tier one project, depending on their size. Overall, the works these firms do can be worth hundreds of thousands or many millions.

Tier 2

Tier two contractors are still heavy hitters and benefit from some higher or lower tier works. Companies ranked here still tale on more commercial works rather than residential. These can include education, retail or smaller industrial premises. Clear as day we see tier two is somewhere between one and three, so these contractors do works ranging from tens and hundreds up to thousands and lesser millions – assuming they’re of high quality with the proper accreditations like NICEIC and BAFE. The reason these two approvals are important is so you can have multiple types of work done by a single contractor.

Tier 3

Tier three contractors are for smaller projects or some medium sized ones like small industrial units, small shops and residential areas. These contractors also play a key role in rebuilds and refurbishments and will always be essential to he construction industry as firms always have the opportunity to expand and climb the tier ladder.


For further information, contact AEL on 01302 746 295 or email us at office@analogueelectrics.co.uk.