Tips on Registration

Tips on Registration

Put your best foot forward when you apply for grading with the cidb. Making sure that your business gets the grade that it deserves gives you advantage. Spend a bit more time preparing application documents and take charge of the outcome.

Preparing and submitting financial statements

When preparing and submitting financial statements make sure to: 

  1. Provide details of your accounting officer as required in Section D of the application form. Don’t ignore Section D. It is very important.
  2. Provide the correct accounting officer’s details. Section D requires details of the accounting officer who compiled your financial statements. This is the only relevant accounting officer whose details are required in Section D. Any other person’s details will render your application non-compliant.
  3. Use an accounting officer who is registered with a recognised accounting body to compile financial statements. Don’t use a tax practitioner.
  4. Use an accounting officer who is in good standing with the accounting body that they are registered with. If your accounting officer is not in good standing with their registered accounting body your application will be deemed non-compliant.
  5. Compile financial statements in terms of the generally accepted accounting principles (GAAP). Don’t let your accounting officer sell you short when compiling your financial statements.
  6. Submit proper financial statements, not draft statements. The cidb does not accept those.
  7. Provide documents that support your financial statements if they are not audited. If your financial statements are not audited provide the cidb with copies of either bank statements, or with Vat returns (Vat 201 and Vat statements of account) as supporting documents.
  8. Submit financial statements for the correct financial year. This includes any supporting documents such as bank statements and Vat returns. The correct financial year is the 12 months preceding your application for registration. Anything outside that period is irrelevant and will render the application non-compliant.
  9. Your bank statements or Vat returns must be complete. Submit all pages of the statement and not just some.  Half or partial statement will render your application non-compliant.
  10. Your bank statements must have a bank stamp.
  11. Make sure that your accountant has accounted for tax in your financial statements.
  12. Make sure that the accountant has transferred figures correctly in the financial statements.

Preparing and submitting track record

The right supporting documents will ensure that your submission complies with basic requirements when you apply for contractor registration. Here are a few tips on things to pay attention to:     

  1. If you submit a bank statement to prove that you were paid for a project, make sure that payments on the bank statement match the amounts in the invoices you submit to the cidb. Mark these payments clearly in the bank statement. Don’t shade them. Shading makes them dark and hard to read. Illegible statements are inadmissible.
  2. If you are using a track record you acquired as a subcontractor, attach a copy of your subcontracting agreement. Without the subcontracting agreement your track record may be inadmissible.
  3. If you are using a track record you acquired in a joint venture, attach a copy of your joint venture agreement.
  4. If you are applying for different classes of works using the same project, attach the bill of quantities showing the breakdown of the classes of works involved.
  5. The letter of project award must be on the client’s letterhead not your company’s letterhead.

Your status on the RoC determines whether you are still good to trade.

Know your status and what it means.    

cidb statuses and meanings

Do you know what the different cidb statuses mean?

1.

Active

Means that the cidb has successfully processed your application and you now have a grade. Your registration is valid, and you are eligible to be awarded government tenders.

2.

Awaiting Activation

Means that the cidb has successfully processed your application and you now have a grade. But, your registration cannot be activated on the cidb website because the funds you paid for grading are insufficient.

What you need to do:
Pay the outstanding balance on your application. Once the outstanding fees are settled you will be activated and your company will be listed on this website, where clients can find you.

3.

Suspended

Suspended means you are still registered but you cannot trade with government until your suspension is lifted. During this period, your company listing will not be visible or accessible to clients on the cidb website.

You can be suspended because:
  1. Your annual update is outstanding. Please note that annual updates do not apply to Grade 1s.
  2. Your tax Compliance Status is not up-to-date. Or
  3. Your electrical license is no longer valid.

    To help you remember to update these requirements the cidb will also send you a reminder at least three months before the due date.

What you need to do:
  1. Complete the relevant form for annual update and pay the annual fee. You only need to pay annual fees applicable to your highest grade if you are registered in more than one grade. Or,
  2. Supply the cidb with your up-to-date Tax Compliance Status document, issued by SARS. Or
  3. Submit a valid electrical license.

4.

Deregistered

This means that you have not updated your registration in two successive years. Each year the cidb will send you a reminder to submit the relevant form and pay due annual fees. If after two years you have still not updated you will be deregistered.

What you need to do:
Submit a completed annual update form and pay all outstanding annual fees. You can also complete the update and pay online on this website.

5.

Expired

The cidb registration is valid for three years, after which the grade lapses or expires.

What you need to do:
Apply for 3-year renewal and attach the necessary documents. These are company registration documents, identity documents of all members, valid Tax Compliance Status document issued by SARS, track record and financial statements.

The cidb has relaxed track record requirements on 3-year renewals to help contractors maintain their grades in this period of economic difficulty. If you haven’t won a project in the last 5 years we won’t penalize you for it, but you still have to submit documentation. More information on these relaxations is available on this website.

Your application for 3-year renewal can be submitted physically at, or you can email it to your nearest cidb provincial office.

6.

Non-compliant

When you apply for registration attach all relevant documents to enable the cidb to assess it for grading. The cidb will deem your application non-compliant if it is not supported by all relevant documents. The cidb will send you an SMS notifying you of what is outstanding to make your application compliant.

What you need to do:
Submit the outstanding documents promptly so that the cidb can adequately assess and finalise processing of your application for the grade.

7.

Awaiting cancellation

Where the application is not adequately supported by all the necessary documentation the cidb will give the contractor 60 days to comply. After 60 days the cidb will cancel the application if the missing information is still not received.

What you need to do:
Submit the outstanding documents so that your application can be processed.