The Construction Industry Development Regulations and practice guides stipulate the strict conditions under which a contractor may be awarded a contract above their grading tender value limit. These conditions apply where:
The client applies the contractor’s Potentially Emerging status to pursue clear development goals and has put in place contractor development support to ensure success of the project.
The client invokes Regulation 25(7a). The clause allows the client to award a contractor a tender above their tender value limit, provided that the margin by which the tender exceeds the contractor’s value limit is reasonable; the award does not pose undue risk to the state; and the tender offer complies with all regulations
No. The client must indicate the intention to award a project to a PE contractor in the tender advert in order to invoke the rules of the PE status on tender award.
Currently the role of the Register of Contractors is to provide macro-risk assessment to support clients’ procurement. It does not remove the client’s responsibility to conduct due diligence to ensure suitability of a contractor for the project that needs to be delivered.
To determine grading the cidb considers the contractor’s verifiable track record of a project(s) completed in the relevant class of works and to the requisite value. It also considers the contractor’s demonstrable financial capability to operate in the relevant grade.
In Phase 2, emphasis will also be on the contractor’s actual performance on individual projects. Phase 2 of the Register will be undertaken under the cidb Contractor Recognition Scheme.
This is the role of the Register of Projects. Clients must register project cancellation on the Register of Projects. This is the only way that industry can reliably keep track of poor performers.
Clients must also register project completion on the RoP.
Not yet, although this is under consideration. Currently the Register of Contractors only grades and categorises prime or main contractors. It also does not grade labour only contractors.
If the project value is R30 000 or above the client must use a cidb registered contractor.
The names, particulars and grading levels of all registered contractors are published on the cidb website. The cidb website is the only up to date and reliable method of authenticating a contractor’s registration
The client may not stipulate a tender validity period of more than 8 weeks. In exceptional circumstances the period may be 12 weeks, but not more. Tender evaluation should be completed within 8 weeks.
Yes. The client can evaluate the tender from a contractor graded lower than the estimate, provided the advert clearly states that the grade is only an estimate.
This is a breach of the cidb standard conditions of tender and the client must disqualify both bids. The possible breach of trust between the joint venture partners has the potential to put the client at risk.
The misrepresentation is also a breach of the cidb Code of Conduct for all parties engaged in construction procurement.
No. The correct way of advertising tenders is to stipulate the minimum cidb grading that tenderers should have, as an estimate.
The client may not cancel a tender, abandon the tender process or reject responsive tender offers, only to re-advertise the same scope of work within 6 months. The cidb Standard for Uniformity requires the client to wait at least 6 months before re-advertising.
The exception to this rule is if the client only received one response and the tender was returned to the tenderer unopened. Or if the tender was cancelled before the closing date. For more information please refer to cidb Practice Note 18.
The skills of a contractor are not yet considered when assessing a grade. But it is envisioned that this will form part of the future Contractor Assessment Scheme in Phase 2 of the Register. This could include skills accredited through recognition of prior learning.
The client must:
Consider the signed Form of Offer and Acceptance
Analyze the tender price according to the bill of quantities (BoQ) or activity schedule
Identify any gross misplacement of decimal point in any unit rate
Identify omissions in the BoQ
Identify arithmetic errors in the calculation of line items – item totals, page totals or section totals
Inform the bidder of the errors and ask the bidder to confirm the price stated in the Form of Offer and Acceptance
Adjust the price to the correct figure
Evaluate the tender based on the confirmed price
The contractor may only communicate disagreement with the corrected price in writing.
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