There are many projects today in Nigeria that are either government or private sector driven. Each of these projects require the supervision and coordination of contractors. Due to the size of the projects, it is required that the project be handled by individuals skilled in its handling; a service that contractors provide efficiently. Contractors handle all the stress and risks that may arise. For this, their efforts and expertise are handsomely rewarded. How can you become a contractor in Nigeria and be rewarded too?
Although rewarding, there are hurdles and challenges on the way to becoming a certified contractor. But why the word “certified”? you may ask. Certification is a necessary requirement in the quest of becoming a contractor. Without certification, an individual calling his/herself a contractor is considered as being quack and thereby being incompetent to handle any meaningful job. For such an individual, the contracts he/she is most likely to attract are petty contracts which rarely pay.
The Major Types of Contractors
There are two major types of contractors. These include the general contractors and the specialist contractors. The difference between the two is that general contractors, as the name suggests handle every type of project. You may want to call them jack of all trade. Should we say master of non? just kidding! In a situation where bids are placed for oil contracts, these type of contractors (general) also partake in the bid. Also, they will be present in a bid for a road construction. They are everywhere.
The fact that they are not specialized in particular fields does not make them incompetent for the job. They may have a pool of professionals in various fields that can efficiently handle assigned contracts satisfactorily. The second class of contractors are the specialized contractors. These are specialized in particular fields which may either be oil exploration, insurance, mining, agriculture, medicine etc. Let us now focus on how to become a contractor in Nigeria.
Requirements of Becoming a Contractor in Nigeria
There is a standard requirement provision made available by the regulatory body for federal contractors. All federal contractors are required to register with the Bureau of Public Procurement. This is the national database for all contractors in Nigeria and streamlines the activities of all federal contractors. By this arrangement, it means that for every advertised contract, federal contractors are first considered or most preferred for the job. Their registration with the Bureau of Public Procurement bearing witness to their ability to handle the job.
A temporary ID is given to interested applicants after having supplied their email addresses. This ID sent to the email address provided is used to access the Bureau’s website. On the website, the following are to be submitted;
- A classification of business information.
- Business Categorization Information.
- An ITF (Industrial Training Fund) certification showing a detailed history of contributions to the fund.
- A company key personnel information.
- Company tax compliance information; this information reveals the level of compliance to tax payment.
- The company registration details are a key criteria needed to qualify for registration.
- For businesses categorized under “goods,” a manufacturer representative information is required
- Companies classified under the services sector are required to submit a professional body regulatory information.
- Information on employee pension compliance is also to be presented.
Classification of Contractors
Having met all the requirements demanded by the Bureau of Public Procurement, and passed its verification, the company undergoes a classification process where the company is classified according to its financial muscle. The state of its equipment and types of available equipment and its personnel are among the criteria used. The initial temporary ID sent to the contractors email address at the on-set is changed with a permanent ID and password which can be used at any time to manage information on the contractor’s account.
Some other establishments require additional information before being considered for a contract. Some of them include;
- A reference from a bank of reputable standing standing for the contractor
- A record of annual audited accounts
- A Value-Added-Tax (VAT) registration certificate.
You needed it, and here it is! These are the very basic requirements on how to become a contractor in Nigeria. Armed with the above information, the interested contractor is on the path of achieving his/her desires. However, completing the entire process requires diligence and patience as it can be sometimes tasking.