What is business classification for?

Are you thinking of applying for a public tender? Is the economic amount a remarkable one? To make a long story short, business classification is useful to accredit the tenderer’s solvency and ability to act ensuring the correct performance of the service to the contracting authority.

Business classification is an essential requirement for those companies willing to apply for tenders with an estimated value higher than 500.000 €.

Whenever business classification is not mandatory, filing the registration certificate means costs savings in filing the offer for the tender since it can replace all documentation to be included in the administrative documentation file.

When is business classification necessary?

A business classification is not always necessary to apply for a tender. It is only mandatory for construction contracts with an estimated value of 500.000 € or more.

It is neither demandable for services or supply contracts regardless its value, though it may be used for this kind of contracts.

Business classification is not mandatory for construction contracts below 500.000 €, neither for services nor supply contracts, but it may be used to speed the documentation for the administrative file.

How long does the classification last?

Once obtained, business classification lasts indefinitely as long as remain the existing conditions and circumstances when granted.

In order to keep the classification, the company must justify it keeps the economic and financial solvency every year and the technical and professional on a 3-years basis. To do so, it must file the corresponding affidavit stating the maintenance of the conditions or, if not, the updated documentation with the new information to be registered.

How is the business classification organized?

Procedure

Business classification is organized in accordance to activity, services provided, and solvency. Companies are classified in activity groups and subgroups (subject of contract). From each category hangs a subgroup which represents the upper limit of solvency demandable to those construction contracts the company will be able to apply for.

Classification is made out of three digits, being the first the letter corresponding to the subsector into the construction sector; in second place, a number indicating –into the subsector– the concrete object of the classification; and at last, another letter indicating the upper limit referred to the estimated value of contracts for which a particular classification is valid.

Construction contractors business classification groups

First digit classifies the specific subsector into the construction subsector:

Group A. Earthwork and perforations.
Group B. Bridges, viaducts, and big structures.
Group C. Buildings.
Group D. Rail.
Group E. Hydraulic works.
Group F. Maritime works.
Group G. Roads and tracks.
Group H. Transport of oil and gaseous products..
Group I. Electrical installations.
Group J. Mechanical installations.
Group K. Particular ones.

Category and amount of construction contracts

The classification into one of these groups and subgroups will be given a category which will represent the upper limit of the value of contracts they can apply. It is determined by annual average:

Category A when its annual average is below 60,000 €.
Category B when annual average is over 60,000 € and below 120,000 €.
Category C when annual average is over 120,000 € and below 360,000 €.
Category D when annual average is over 360,000 € and below 840,000 €.
Category E when annual average is over 840,000 € and below 2,400,00 €.
Category F when annual average is over 2,400,00 €.

Services contractors business classification groups

Group L. Administrative services.
Group M. Specialized services.
Group N. Qualified services.
Group O. Real property conservation and maintenance services.
Group P. Equipment and installations maintenance and repair services.
Group Q. Machinery maintenance and repair services.
Group R. Transport services.
Group S. Residues and waste treatment services.
Group T. Contents services.
Group U. General services.
Group V. Communications and Information Technology services.

The subgroups existing into each group can be checked in articlo 37 and Annex II of RD 1098/2001, which approves the General Regulation of the Public Contracts Law.

Category and amount of services contracts

Category A when annual average is below 150,000 €
Category B when annual average is over 150,000 € and below 300,000 €.
Category C when annual average is over 300,000 € and below 600,000 €.
Category D when annual average is over 600,000 €.

How to get a business classification

Autonomous regions

The procedure to get a business classification is processed by the State Administrative Contracting Commitee, attached to the Ministry of Economy and Treasure.

Autonomous regions can also implement their own business classification systems, only valid for the region and granted following the national classification criteria. Some of the regions with their own classification systems are Catalonia, Murcia, Canary Islands, and the Basque Country.

The classification procedure is long and large. It takes the collection of a great amount of documentation and information. This is why, though not mandatory, it still is a good tool to speed the filing procedures to apply for public contracts.

Steps to get it

File a physical application form at the Ministry of Economy and Treasure or a Delegation office.
Telematic application can be filed at https://eclasificacion.meh.es/webclaem/default.aspx. Available forms can be checked at the contracting section at the Ministry of Economy and Treasure.
Application form must be correctly filled in and files attached with the following additional documentation (for both electronic and physical filing):
The company’s legal representative’s ID card certified copy.
A certified copy of the company’s Memorandum of Association.
Affidavit of not being affected for any disqualification for a public contract.
Certification of being up to date with tax obligations.
Certification of being up to date with Social Security obligations.
Authorization, if applies, to engage in the activity of the subgroup to which classification the company is applying for.
Certificates of satisfactory execution of the construction or services provided duly signed by the contracting authority.