How are contractors grouped according to their monetary limitations?

Contractors are classified according to their monetary limitations based primarily on their net worth. This grouping allows regulatory bodies to ensure that contractors have the financial stability and capability to handle projects that fall within specific financial thresholds. Monetary limitations are crucial in assessing a contractor's ability to undertake projects that require significant capital, as net worth provides an overview of the contractor's financial health. By evaluating net worth, clients and regulatory entities can better ascertain which contractors are most qualified for certain project sizes and financial responsibilities, thereby ensuring that the work can be completed successfully and without undue risk of financial insolvency.

In contrast, grouping contractors by geographical location, project size, or years in business does not necessarily provide a direct connection to their monetary limitations and would not adequately reflect their financial viability for specific contracts.