Tier 1, Tier 2 & Tier 3 meaning in Construction
Below is iseekplant's complete guide to Tier 1, Tier 2 and Tier 3 contractors and construction companies in Australia (along with definitions on each of these tiers). The construction companies listed below are responsible for some of Australia's largest infrastructure projects . They are also some of Australia's largest companies generally.
Explaining the Meaning of Different Tiers of Contractors
When we talk about Tier 1 contractors, Tier 2 and Tier 3 - this is how we rank a diverse construction company with many civil engineering projects underway and where they sit in the complex construction procurement process on big jobs.
- A Tier 1 contractor is a construction company that has the ability to self-perform most of the required work on a project with its own employees and equipment. They also usually have a large balance sheet, can take on the project risk and major procurement functions.
- A Tier 2 contractor is a construction company that relies on subcontractors to perform much of the work.
- A Tier 3 contractor is a construction company that relies heavily on subcontractors and usually only performs minor work on a project.
- Plant hire companies or equipment providers are still subcontractors, but they are responsible for providing equipment on a wet or dry hire basis, and aren't responsible for the delivery of a whole part of the contract. They usually work under the instruction of the Tier 3 contractors.
Now that we know the basics of what each tier entails, let's take a more in-depth look at how these tiers interact on construction projects.
Meaning of Tier 1 Contractor
A head contractor - often referred to as a Tier 1 contractor, is the company tasked with the major engineering and coordination of the project and is the proponent breaking up the job into smaller construction contracts. There is usually a centralised procurement effort that is attempting to control, streamline and proceduralise the procurement of major equipment and services on the site. Sometimes a Tier 1 contractor can partner up with a multinational construction outfit and they can carry the risk and financial responsibility of the construction project together (called a joint venture). Tier 1 construction companies and builders are considered the industry leaders - they are the largest and most experienced in the industry, deliver projects of the utmost quality and have a long-standing track record for major project work. Tier 1 construction companies work on the largest and most iconic projects (think projects with contract values in the billions and hundreds of millions) and also have the largest revenues. It is not easy to become a Tier 1 construction company in Australia, in total, there are 14 Tier 1 construction companies in the entire country!
List of Tier 1 Contractors Australia
Below is a complete list of the biggest players in the construction industry who undertake major projects and major infrastructure projects as their core concerns. Tier One contractors offer sophisticated engineering consultancy services , project management services at the highest levels of a project, as well as coordinating and subcontracting down the funnel through Tier 2 and Tier 3 contractors. Every single contractor on this list uses iSeekplant on a regular basis to find construction plant and services . If you want work from these big guys, then we recommend you join, quick smart.
- Lend Lease
- CPB Contractors - CIMIC Group
- Acciona
- Laing O'Rouke
- John Holland
- Thiess
- Bouyges
- BGC Contracting
- Downer
- BMD
- Mirvac
- Adco Constructions
- Clough
- McConnel Dowell
Meaning of Tier 2 Contractor
Tier 2 construction companies are mid-tier companies that play a major role in the construction industry. Tier 2 construction companies typically focus on large scale commercial projects and small to mid-sized infrastructure projects. You can expect to see Tier 2 construction companies awarded contracts in the tens of million of dollars. Contracts range from $50m to $300m. Tier 2 contractors, or a mid-tier builder, are usually the smaller civil engineering companies that are responsible for a multi-million dollar package of works on a big job - delivering sophisticated projects across multiple construction disciplines. Tier 2 construction companies partially deliver the works, provide construction supervision, construction management, subcontractor management & civil engineering oversight. The following list of national Tier 2 contractors does not include the joint ventures often found in construction where two Tier 1 contractors, or a Tier 1 and a Tier 2 contractor form a separate company to operate a big, long-term construction project. In the case of a joint venture, that JV is its own infrastructure company headquartered near a major project.List of Tier 2 Contractors in Australia
Being considered a Tier 2 contractor generally means you have to operate in multiple states, and you are the second contractor down from the head contractor (or Tier 1 contractor). The majority of Tier 2 contractors are based on the east coast of Australia.- Seymour Whyte
- Watpac
- ADCO
- Buildcorp Australia
- Grocon
- Growth Build
- Hansen Yuncken
- Richard Crookes Constructions
- Monadelphous
- NRW
- McMahon
- Hutchinson Builders
- Winslow
- Decmil
- Beilby
- Georgio
- Wagner
- FKG Group
- Abergeldie Contractors
- Diona
- Broadspectrum
- Enviropacific
- Golding Contractors
- Monford Group
- Kane Constructions
Meaning of Tier 3 Contractor
Tier 3 construction companies typically work on smaller scale projects, these could be both residential projects and small-scale commercial jobs. Typically, a Tier 3 construction company will take on contracts of around $1 million, and up to about $50m at the absolute maximum. $50m is where the Tier 2 contractors start coming into play. The residential jobs Tier 3 companies take on are typically larger in size, while the commercial work is a smaller scale (think service stations, fast food restaurants, office buildings etc). Tier 3 contractors are the doers on a job, contracted by the Tier 2 contractors - the ones offering equipment and skilled labour to get the job done.List of Tier 3 Construction Companies by State
We've tried to put these in a rough list for you in terms of size or at least, the number of projects we think they have on. It is as rough as guts, only because we can't possibly know how much work they have on at the moment, but we've tried to order them by size based on the amount of jobs they post through iSeekplant. A fun fact about the tier 3 market As many of these companies are privately owned, we can't know their revenue, enterprise value or their projects - as they are confidential. But based on the amount of work we see them undertake, we can take a rough guess.
If the following names have links - that means they have a profile on iSeekplant .
List of Tier 3 Contractors Queensland
- Shadforth Civil (QLD)
- Allroads
- Shamrock Civil (QLD)
- Alder Constructions
- Black Cat Civil
- McIllwain Civil
- Doval Constructions
- Hazell Bros ( QLD)
- Seaforth Civil
- CB Energy
- B&L Civil
- Baden Civil
- Civcorp
- Civil Mining and Construction (CMC)
- Civil Plus
- CCIS
- Coops Drainage and Civil
- Demac Construction
- Hall Contracting
- Vassalo Constructions
- HEH Civil
- Ikin Civil
- JF Hull
- Joe Wagner & Sons
- Northern Civil Earthworks
- SMC Marine
- Pro Edge Civil
- QLD Civil Engineering
- QLD Bridge & Civil
- RJ Civil Contracting
- Robar Civil
- Roebuck Civil
List of Tier 3 Contractors New South Wales
- TRN
- Coastwide Civil
- Christie Civil
- Downer Stabilising
- Daracon Group
- Taylor Construction Group
- Nace Civil
- JNC Group
- Robson Civil Projects
- Silver Raven
- Moits
- AW Edwards
- Ford Civil Contracting
- Delta Group
- Menai Civil
- Haslin Constructions
- Mainland Civil
- JK Williams Contracting
- JC Excavations
- Seadar Contractors
- McDonald Contracting
- Green Civil
- Inco Group
- Bolte Civil
- Ron Southon
- Earthtec
- Select Civil
- Quay Civil
- Saunders Civil Build
- Seadar Contractors
- Freyssinet Australia
List of Tier 3 Contractors in Victoria
- JNR Civil
- Auswide Plumbing and Civil
- Kalow Holdings
- Lake & Land
- MFJ Constructions
- AMH Civil
- Begbies Contracting
- Citywide Civil
- Civil By Parker
- Civlink Group
- Earthworks Civil & Construction
- Bayside Contracting
- BRD Excavation
- Califam Constructions
- GR Dirtworx
- Gradian Projects
- Grid Civil
- Quarrel Civil Construction
- Rowe Constructions
- Rustel Constructions
- SHS Civil
- Quarrell Civil Construction
- Vic Civil Solutions
List of Tier 3 Contractors in Western Australia
- Albem Operations
- cCivil
- Civlec
- J&K Civil (WA)
- Westforce Construction
- Bocol Constructions
- Central Earthmoving
- Geographe Civil
- Civcon Civil & Project Management
- Carey & Centrals
- Civil Road & Rail
- Coleman Rail
- Maca Civil
- Complex Co
- Cotton Holdings
- DeGrey Civil
- Densford Civil
- Exact Contracting
- Fortec Australia
- Garli
- GRC Civil
- Keslake Group
- Jonor Construction
- Enviro Infrastructure
- Highway Construction
- JAK Civil
- Melchor Contracting
- Ralmana
- Raubex Construction
- Red Dust Enterprises
- SRG Global Civil
- Valmec Australia
- Wormall Civil
List of Tier 3 Contractors in South Australia
- Lucas Total Contract Solutions
- Ausdig
- DML Constructions Civil Contractors
- T&J Constructions
- Beltrame Civil
- SA Civil Earthworks
- Tron Civil Contracting
- Team Civil
- Diverse Civil & Commercial Projects
- Leed Engineering & Construction
- Civil Group
- Australasian Construction
- Knox Constructions
- Exact Contracting
List of Tier 3 Contractors in Northern Territory
- Northern Australia Civil
- NT Construction Solutions
- Exact Civil Constructions
- Akron Group NT
- East Arm Civil
- Diggamen Civil Contracting
- JLM Civil Works
- Sunbuild
- Territoria Civil
- DTA Contractors
- S&R Building & Construction
- Jaws Contracting
List of Tier 3 Contractors in Tasmania
- Shaw Contracting
- RCCC Civil Contracting
- Tas City Building
- MS Civil
- Andrew Walter Constructions
- DDM Civil
- Civilscape Contracting
- Batchelors Earthmoving
- MSD Constructions
- Zanetto Civil
- De Kliene Constructions
- Groombridge Civil
- Black Cap Construction
- Stanton Roberts Civil Contracting